Molson Coors Reports First Quarter 2009 Financial Results



    DENVER and MONTREAL, May 5 /CNW/ -- Molson Coors Brewing Company (NYSE:  
TAP; TSX) today reported higher income for the first quarter ending March 29,
2009.

    Peter Swinburn, Molson Coors president and chief executive officer, said
"In the first quarter, our strong brands, strategic initiatives, cost
reductions and lower incentive compensation drove 75 percent profit growth for
our company.  We also achieved positive pricing and local-currency profit
growth in each of our major markets. These positive factors more than offset
continuing commodity inflation, unfavorable currency movements, a higher tax
rate, and lower volume, particularly in the U.K.  We are pleased with the
bottom-line momentum we have achieved leading into the peak summer selling
season, but we nonetheless remain cautious about the rest of the year due to
uncertainty around currency exchange rates and beer market volume trends, plus
continuing commodity price inflation."
    

    First Quarter Highlights(1)
    
    Key operating and financial highlights for the Company's fiscal first
quarter ended March 29, 2009, compared to the fiscal first quarter ended March
30, 2008, include the following:
    
    --  Molson Coors worldwide beer volume declined 2.7 percent on a pro forma
        basis.
    --  Worldwide Coors Light volume grew more than 4 percent from a year ago.
    --  Net income attributable to Molson Coors increased $41.4 million, or
        120.6 percent, to $75.7 million for the first quarter.
    --  Underlying after-tax income(2) increased 75.3 percent to $98.8
million,
        or $0.53 per diluted share, up from $56.4 million, or $0.31 per
diluted
        share a year ago.  This strong earnings performance was driven by
        increased beer pricing and substantial cost reductions across the
        company, which more than offset continuing commodity inflation,
        unfavorable currency movements, and lower worldwide volume.
    --  In the first quarter, foreign currency movements decreased total
        underlying pretax income $9 million.

    --  Excluding the impact of foreign currency, the Company's underlying
        income increased approximately 89.4 percent in the quarter.


    
    (1) First quarter 2009 results reflect the Company's adoption of new
accounting standards for convertible debt (FSP APB14) and "Non-controlling
Interests in Financial Statements" (FAS160), as well as the adoption of
hectoliters as its standard global volume measure. Prior period results
presented have been adjusted to reflect these changes.

    (2) The Company calculates non-GAAP underlying income by excluding
special and other one-time items from the nearest U.S. GAAP earnings measure. 
To calculate underlying income in the first quarter of 2009, the Company
excluded one-time expenses, particularly related to MillerCoors and the
Foster's cash-settled total-return swap, as well as net special charges of
$10.2 million pretax.  For further details, please see the section "Special
and Other One-Time Items" below, along with tables for reconciliations to the
nearest U.S. GAAP measures.  All $ amounts are in U.S. Dollars.

    The Company's effective tax rate during the first quarter 2009 for income
from continuing operations was negative 2 percent on a reported basis, and
positive 8 percent on an underlying basis. These rates are lower than the
Company's expected annual rate for 2009 because of the favorable resolution of
unrecognized tax positions in the quarter. The Company estimates that its
full-year 2009 effective tax rate will be in the range of 16 percent to 20
percent on an underlying basis.

    During the quarter, Molson Coors achieved an incremental $18 million of
cost savings as part of its three-year, $250 million Resources for Growth
(RFG) cost savings program. These cost savings include the company's 42
percent share of RFG cost savings initiatives that were achieved by
MillerCoors, which equaled $3 million in the first quarter.

    MillerCoors further accelerated synergy delivery timing, realizing $50
million in the first quarter which captures some savings originally planned
for delivery in the second quarter.  A total of $78 million in synergy savings
has been realized since July 1, 2008, exceeding the company's original goal of
$50 million for the first 12 months of operations. The company now expects to
realize $128 million of synergies by June 30, 2009.

    By the end of calendar year 2009, MillerCoors expects to achieve a total
of $238 million in synergies, surpassing its original forecast of $225
million.  While the timing of synergy delivery has accelerated, MillerCoors'
$500 million synergy goal is unchanged.

    Molson Coors Brewing Company's total worldwide beer volume was 10.516
million hectoliters in the quarter, 2.7 percent lower versus the prior year on
a pro forma basis, as shown in Table 1 below.
    

    Table 1:  Molson Coors 2009 First Quarter Worldwide Beer Volume
    


    
                       Thirteen Weeks Ended      Thirteen Weeks Ended
                       --------------------      --------------------
    

    
                        March 29, March 28,  %    March 29, March 28,   %
                           2009    2008    Change   2009      2008    Change
                       -------------------------- ---------------------------
                          Actual   Pro             Actual    Actual
                                  forma (1)
     Volume in U.S.
      hectoliters (000):
       Financial volume   3,895    4,201   (7.3%)   3,895    10,710   (63.6%)
       Royalty volume        51       53   (3.8%)      51        53    (3.8%)
                       --------------------       -------------------
     Owned volume         3,946    4,254   (7.2%)   3,946    10,763   (63.3%)
       Proportionate
        share of equity
        investment
        sales-to-retail
         (2)              6,570    6,549    0.3%    6,570        45     N/M
                       --------------------       -------------------
     Total Molson Coors
      worldwide beer
      volume             10,516   10,803   (2.7%)  10,516    10,808    (2.7%)
                       ====================       ===================
    (1)  Reflects the reduction of the U.S. segment financial volume reported
    for the 13 weeks ended March 29, 2009.
    

    
    (2)  Reflects the addition of Molson Coors Brewing Company's
    proportionate share of MillerCoors sales-to-retail for the periods
    presented, adjusted for comparable trading days.
    

    
    N/M = Not meaningful

    Business Segments

    Following are the Company's 2009 first quarter results by business
segment:

    Canada Business

    
    The Canada business reported underlying pretax income of $58.1 million in
the first quarter, a 9.4 percent decrease from the same period last year, as
gains in the base business were more than offset by unfavorable foreign
exchange.  The year-over-year depreciation of the Canadian dollar versus the
U.S. dollar was 20 percent, which reduced the Canada segment underlying income
by approximately $12 million.  In local currency, Canada underlying pretax
income was more than 13 percent higher than the first quarter 2008.

    Canada sales-to-retail (STR) decreased 3.2 percent in the first quarter
versus last year, resulting in a market-share decrease of about three-quarters
of a share point.  Strategic brand changes were led by double-digit growth of
Coors Light and mid-single-digit growth by Carling, offset by the decline of
partner imports, Molson Canadian and non-strategic brands. This deceleration
versus first quarter 2008 was driven by soft industry volumes and the
Company's decision to limit participation in off-premise discounting in a
number of provinces during the quarter. Canada beer industry volumes declined
an estimated 1.2 percent in the quarter.

    Canada sales volume was 1.8 million hectoliters, virtually unchanged
versus 2008.  Comparable(3) net sales per hectoliter increased 2.0 percent in
local currency, led by price increases across all major markets, partially
offset by continued discounting activity.

    Cost of goods sold per hectoliter increased 2.4 percent on a comparable
basis in local currency, primarily due to a 2.5 percent inflationary increase
in commodities, packaging materials and distribution. About a third of these
inflationary increases were offset by savings from cost reduction initiatives.
Additional cost increase drivers include a 1 percent increase in overhead
expenses and ongoing sales mix shifts.

    Comparable marketing, general and administrative expenses decreased 5.7
percent in local currency, driven by lower overhead expense and cycling higher
long-term incentive compensation costs in the prior year.

    Other income increased due to $2.7 million of pretax gains from foreign
currency hedges.

    (3)  Except where otherwise indicated, comparable Canada results exclude
the deconsolidation of Brewers Retail Inc. in Ontario on March 1, 2009, and
effects of forming MillerCoors in 2008. Comparable results exclude the
year-over-year impact for beer sales to MillerCoors.  With the completion of
the MillerCoors joint venture, the financial impact of our brand exports to
the U.S. are no longer being treated as inter-company sales and eliminated
upon consolidation of total Molson Coors results.  Sales volume for these U.S.
exports are excluded from Canada results and are now reported by MillerCoors.
    

    United States Business (MillerCoors)(4)

    
    Molson Coors underlying U.S. segment pretax income increased 52.3 percent
to $94.2 million in the first quarter due to strong underlying income growth
by MillerCoors.  U.S. segment results include the Company's 42 percent share
of net income attributable to MillerCoors and various adjustments for the
equity income calculation under U.S. GAAP, as shown in Table 5 below.
    

    MillerCoors Operating and Financial Highlights (U.S. GAAP)

    
    For the first quarter, underlying net income attributable to MillerCoors,
excluding special items, increased 46.3 percent to $216.4 million from the
prior year pro forma result, driven by accelerated synergy delivery, strong
revenue growth, disciplined cost management, and phasing of marketing
expenditure, despite continuing commodity cost pressures.

    MillerCoors domestic STRs increased 0.4 percent versus the prior year pro
forma quarter due to strong results from five of the six focus brands, offset
primarily by declines in Miller Lite and Milwaukee's Best.
    
    --  Coors Light STRs were up low single digits
    --  Miller Lite STRs decreased mid-single digits, a reduced year-over-year
        rate of decline versus the previous quarter
    --  The continued acceleration of MGD 64 led to volume growth in the
Miller
        Genuine Draft franchise (up mid-single digits) for the first time in a
        decade
    --  The craft and import portfolio rose in the first quarter, as Blue Moon
        continued to perform well with STRs up high single digits
    --  Keystone Light delivered a strong double-digit increase in STRs

    --  Miller High Life growth accelerated to mid-single digits


    
    Domestic sales-to-wholesalers (STWs) declined 1 percent versus prior
year, while total STWs declined 2 percent, driven by a double-digit reduction
in contract brewing volumes.

    MillerCoors total net sales increased by 3.8 percent to $1.716 billion
versus the prior pro forma quarter.  Excluding contract brewing and
company-owned distributor sales, net sales increased 4.5 percent to $1.609
billion.  Third-party contract brewing volumes declined 10 percent, though
profits from contract brewing increased slightly.

    Pricing remained strong in the first quarter as domestic net sales per
hectoliter, excluding contract brewing and company-owned distributor sales,
increased 5.6 percent based on 2008 price increases (in the first and fourth
quarters) and reductions in discounting.  Pricing growth was lower than the
previous quarter due to cycling of early 2008 general price increases.

    Though MillerCoors continues to realize supply chain related synergies
and deliver savings from its cost leadership programs - Resources For Growth
and Project Unicorn - Cost of Goods Sold (COGS) per hectoliter increased by
5.3 percent due to significant increases in brewing and packaging materials
related to high commodity costs last year.

    For the quarter, marketing, general and administrative costs decreased by
9.1 percent driven by timing and management of marketing and sales spending
and the accelerated timing of synergy delivery.

    Depreciation and amortization expense for MillerCoors in the first
quarter was approximately $71 million, and additions to tangible and
intangible assets totaled $97 million.

    (4)  MillerCoors, a U.S. joint venture of Molson Coors Brewing Company
and SABMiller plc, was launched on July 1, 2008.  Molson Coors has a 42
percent economic interest in MillerCoors which is accounted for using the
equity method. Molson Coors' interest in MillerCoors' results, along with
certain adjustments under U.S. GAAP, are reflected in "Equity Investment
Income in MillerCoors."  Historical period results have not been reclassified
to conform to this presentation, so year-over-year comparisons of consolidated
and U.S. segment volume, net sales, cost of goods sold, and marketing, general
and administrative results are less meaningful.  For comparability, the parent
companies of MillerCoors have provided a full income statement for first
quarter 2009, along with pro forma results for the prior year period.  This
release also includes reconciliation from MillerCoors Net Income to Molson
Coors Brewing Company Equity Investment Income in MillerCoors (see Table 5)
and Non-GAAP U.S. Segment Underlying Pretax Income (see Table 4).
    

    United Kingdom Business

    
    The U.K. business reported underlying pretax income of $3.5 million in
the first quarter, an improvement of $5.5 million versus the same quarter last
year. A 28 percent decline in the value of the British pound versus the U.S.
dollar reduced underlying pretax income by approximately $2 million.  This
represents the company's best first quarter U.K. profit performance in five
years, driven by strong pricing growth, the ramp-up of its contract brewing
arrangement, and reduced marketing and pension costs, partly offset by lower
volumes and higher input cost inflation.

    U.K. owned-brand volume decreased 13.8 percent during the quarter, while
the beer industry declined 8 percent, reflecting a weak economy in the U.K.
The Company under-performed the market, as it took a firm stance with
customers on pricing.

    In local currency, comparable U.K. net sales per hectoliter of owned
products increased 11.6 percent, nearly three-quarters driven by higher net
pricing in all channels, with the balance of the increase attributable to
positive sales mix.

    Comparable cost of goods sold per hectoliter for owned brands increased
5.2 percent in local currency in the first quarter, due primarily to higher
input cost inflation, partly offset by results of cost-reduction initiatives
and lower pension costs.

    Marketing, general and administrative expense decreased 2.7 percent in
local currency due to lower pensions and marketing expenses in the first
quarter.
    

    Global Markets Business and Corporate

    
    The Company's Global Markets business grew volume nearly 26 percent, on a
small base, driven by the strength of Coors Light in China and Carling in
Europe.  Marketing, general and administrative expense for Global Markets was
$11 million in the quarter, an increase of $2.8 million versus a year ago.

    Corporate general and administrative expense was $21.1 million in the
first quarter, a decrease of $7.8 million, driven by lower employee incentive
compensation this year.

    Corporate net interest expense was $21.9 million in the first quarter, a
decrease of $8.7 million compared to a year ago, with about $5 million of this
reduction attributable to foreign currency movements and the balance due to
BRI deconsolidation.  In the quarter, Corporate other expense of $21.9 million
was driven by a one-time mark-to-market expense related to the Foster's
cash-settled total-return swap.  The underlying pretax loss for Global Markets
and Corporate was $48.4 million, a 22.1 percent decrease versus the first
quarter of 2008.
    

    Special and Other One-Time Items

    
    During the first quarter 2009, the Company reported net special charges
of $10.2 million pretax, which was composed primarily of Canada severance and
pension curtailment charges of $7.5 million and Edmonton Brewery closure costs
of $0.7 million, as well as U.K. restructuring costs of $0.9 million.

    Corporate other expense in the quarter included a $21.4 million one-time,
non-cash mark-to-market expense related to the cash-settled total-return swap
the Company arranged with respect to Foster's common stock in 2008.

    During the first quarter of 2009, MillerCoors reported special or
exceptional items totaling $10.4 million, including employee retention and
relocation expenses. This equates to $4.4 million at Molson Coors' 42 percent
ownership share.

    These special and other one-time items have been excluded from underlying
earnings in the first quarter 2009.
    

    Discontinued Operations

    
    The Company reports results associated with its former Brazilian unit,
Cervejarias Kaiser ("Kaiser"), as discontinued operations.  The Company
reported a loss of $3.9 million from discontinued operations during the
quarter primarily due to the impact of foreign exchange movements on the
Kaiser indemnity estimates.
    

    2009 First Quarter Earnings Conference Call

    
    Molson Coors Brewing Company will conduct an earnings conference call
with financial analysts and investors at 11:00 a.m. Eastern Time today to
discuss the Company's 2009 first quarter results.  The Company will provide a
live webcast of the earnings call.

    Approximately two hours after the conclusion of the earnings call, the
Company also will host an online, real-time webcast of an Investor Relations
Follow-up Session with financial analysts at 2:00 p.m. Eastern Time.  Both
webcasts will be accessible via the Company's website, www.molsoncoors.com. 
Online replays of the webcasts will be available until 11:59 p.m. Eastern Time
on August 2, 2009.  The company will also post this release and related
financial statements on its web site today.
    

    Reconciliations to Nearest U.S. GAAP Measures

    


    
    Molson Coors Brewing Company
    Table 2: 2009 First Quarter Underlying
     After-Tax Income
    (After-Tax Income From Continuing Operations, Excluding
     Special and Other One-time Items)
    (Note: Some numbers may not sum due to rounding.)
    

    
    (In millions of $US, except per
     share data)                                       2009 1st Q   2008 1st Q
                                                       ----------   ----------
    U.S. GAAP: After-tax
    ----------
     income from
     continuing operations
     attributed to MCBC:                                    79.6       43.3
                           Per diluted share:              $0.43      $0.24
    

    
    Add back: Pretax special items - net                    10.2        7.3
    Add back: Pretax  debt extinguishment costs                -       12.4
    Add back: Pretax  loss related to the
     cash-settled total return swap (1)                     21.4          -
    Add back:
     Proportionate share of MillerCoors pretax
     special items - net (2)                                 4.4          -
    

    
    Minus: Pretax  impact of MillerCoors
     accounting policy elections (2)                        (7.3)         -
    Minus: Tax effects related to special
     and other one-time items                               (9.5)      (6.6)
    

    
    Non-GAAP: Underlying after-tax income:                  98.8       56.4
    ---------
                            Per diluted share:             $0.53      $0.31
    

    
    Notes:
    ------
    (1) Included in Other Income (Expense), net
    (2) Included in Equity Income in MillerCoors, but excluded from non-GAAP
    underlying pretax income.


    


    
    Molson Coors Brewing Company
    Table 3: 2009 First Quarter Underlying Pretax Income
    (Pretax Income From Continuing Operations, Excluding Special and Other
     One-time Items)
    (Note: Some numbers may not sum due to rounding.)
    

    
    (In millions of $US)           Business Segments                  Total
                          ----------------------------------------------------
                                                         Global
                                                      Markets and
                          Canada      U.S.      U.K.   Corporate  Consolidated
                          ----------------------------------------------------
    

    
    U.S. GAAP: 2009
     1st Q pretax
     income (loss)
     from continuing
     operations -
     reported               $50.0     $97.1     $2.6    $(70.9)        $78.8
    

    
    Add back: Special
     items - net              8.1         -      0.9       1.2          10.2
    Add back: Loss
      related to the
     cash-settled
     total return
     swap (1)                   -         -        -      21.4          21.4
    Add back:
     Proportionate
     share of
     MillerCoors
     pretax special
     items - net (2)            -       4.4        -         -           4.4
    

    
    Minus: Impact of
     MillerCoors
     accounting
     policy elections
      (2)                       -      (7.3)       -         -          (7.3)
    

    
    Non-GAAP: 2009
     1st Q underlying
     pretax income
     (loss)                 $58.1     $94.2     $3.5    $(48.4)       $107.5
                            -------------------------------------------------
    Percent change
     2009 1st Q vs. 2008
     1st Q underlying
     pretax income (loss)    -9.4%     52.3%   279.7%    -22.1%         73.6%
                            -------------------------------------------------
    U.S. GAAP: 2008
     1st Q pretax
     income (loss)
     from continuing
     operations             $62.7     $69.9    $(4.1)   $(86.4)        $42.1
    

    
    Add back: Special
     items - net              1.4      (8.0)     2.1      11.8           7.3
    Add back: Debt
     extinguishment
     costs                      -         -        -      12.4          12.4
    

    
    Non-GAAP: 2008
     1st Q underlying
     pretax income
     (loss)                 $64.1     $61.9    $(2.0)   $(62.1)        $61.9
                            -------------------------------------------------
    Notes:
    ------
    (1) Included in Other Income (Expense), net
    (2) Included in Equity Income in MillerCoors, but excluded from non-GAAP
    underlying pretax income.

    

    
                                 MillerCoors LLC
               Table 4: 2009 First Quarter Underlying Net Income
                    (Net Income, Excluding Special Items)
    

    
                                                   Three Months Ended
                                              -------------------------------
                                              March 31, 2009   March 31, 2008
                                              ---------------  --------------
    (In millions of $US)                                         Pro Forma
    



    
    U.S. GAAP - Net Income attributable to
     MillerCoors LLC:                              $206.0          $136.6
    

    
    Add back: Special items, net                     10.4            11.3
                                              ---------------  --------------
    Non-GAAP - Underlying net income:              $216.4          $147.9
                                              ===============  ==============

    
    Pretax and After-Tax Underlying Income should be viewed as a supplement
to -- not a substitute for -- our results of operations presented on the basis
of accounting principles generally accepted in the United States.  We believe
that Underlying Income performance is used by and is useful to investors and
other users of our financial statements in evaluating our operating
performance because it provides them with an additional tool to evaluate our
performance without regard to items such as special items, which can vary
substantially from company to company depending upon accounting methods and
book value of assets and capital structure.  Our management uses Underlying
Income as a measure of operating performance to assist in comparing
performance from period to period on a consistent basis; as a measure for
planning and forecasting overall expectations and for evaluating actual
results against such expectations; and in communications with the board of
directors, stockholders, analysts and investors concerning our financial
performance.
    

    Forward-Looking Statements
    
    This press release includes "forward-looking statements" within the
meaning of the federal securities laws, and language indicating trends, such
as "trend improvements," "progress," "anticipated," "expected," "improving
sales trends" and "on track." It also includes financial information, of
which, as of the date of this press release, the Company's independent
auditors have not completed their review.   Although the Company believes that
the assumptions upon which the financial information and its forward-looking
statements are based are reasonable, it can give no assurance that these
assumptions will prove to be correct. Important factors that could cause
actual results to differ materially from the Company's projections and
expectations are disclosed in the Company's filings with the Securities and
Exchange Commission. These factors include, among others, changes in consumer
preferences and product trends; price discounting by major competitors;
failure to realize the anticipated cost savings and other benefits from
MillerCoors; failure to realize anticipated results from synergy initiatives;
and increases in costs generally.  All forward-looking statements in this
press release are expressly qualified by such cautionary statements and by
reference to the underlying assumptions. We do not undertake to update
forward-looking statements, whether as a result of new information, future
events or otherwise.



    
    Molson Coors Brewing Company
    Table 5: Reconciliation of Net Income
     attributable to MillerCoors to MCBC's Equity Income in MillerCoors and
     Reconciliation to U.S. Segment Underlying Pretax Income
    

    
    (Note: Some numbers may not sum due to rounding.)
                                                         Thirteen Weeks Ended
                                                         --------------------
                                                            March 29, 2009
    (In millions of $US)                                 --------------------
    

    
    Net Income attributable to
      MillerCoors                                               $206.0
      Multiply: MCBC economic interest % in MillerCoors             42%
                                                         --------------------
      MCBC proportionate share of MillerCoors net income         $86.5
    

    
      Add: Accounting policy elections (1)                         7.3
      Add: Amortization of the difference between MCBC
       contributed cost basis and the underlying equity
       in net assets of MillerCoors (2)                            3.0
      Add: Share-based compensation adjustment (3)                 0.3
                                                         --------------------
    Equity Income in MillerCoors (reported)                      $97.1
                                                         ====================
    

    
      Add: Proportionate share of
       MillerCoors special items (4)                               4.4
      (Minus): Accounting policy elections (1)                    (7.3)
                                                         --------------------
    U.S. Segment Underlying Pretax Income (Non-GAAP)             $94.2
    

    
    (1) MillerCoors made its initial accounting policy elections upon
    formation, impacting certain asset and liability balances.  These
    adjustments reflect the impact to our investment in MillerCoors, which is
    based upon our contributed assets and liabilities. These adjustments were
    concluded in the first quarter of 2009.
    

    
    (2) MCBC's net investment in MillerCoors is based on the carrying values
    of the net assets it contributed to the joint venture.  MCBC's investment
    basis in MillerCoors is less than our underlying equity (42%) in the total
    net assets of MillerCoors (contributed by both Coors and Miller) by
    approximately $648.1 million.  This amount is being amortized over a
    period of time represented primarily by the remaining useful lives of
    long-lived assets giving rise to the difference.  For non-depreciable
    assets, such as goodwill, no adjustment will be recorded to the
    MillerCoors equity method income unless there is an impairment.
    

    
    (3) The net adjustment is to record all stock-based compensation
    associated with preexisting equity awards to be settled in MCBC Class B
    common stock held by former CBC employees now employed by MillerCoors and
    eliminate all stock-based compensation impacts related to preexisting
    SABMiller equity awards held by Miller employees now employed by
    MillerCoors.  The adjustment is to recognize the additional 58% of the
    stock-based compensation costs associated with those awards recognized and
    reported by MCBC's U.S. business and eliminate all of the costs associated
    with equity awards to be settled in SABMiller equity.
    

    
    (4) MillerCoors Q1 2009 Special Items of $10.4 million, multiplied by
    MCBC's proportionate share of MillerCoors at 42%, equals $4.4 million.

    

    
     Molson Coors Brewing Company
     Table 6: Condensed Consolidated Statements of Operations
     (In Millions, Except Per Share Data)
     (Unaudited)
                                  Thirteen Weeks Ended   Thirteen Weeks Ended
                                  --------------------   --------------------
                                      March 29, 2009        March 30, 2008
                                  --------------------   --------------------
    

    
     Volume in hectoliters                3.895                  10.710
                                  ====================   ====================
     Sales                               $824.2               $1,816.2
     Excise taxes                        (265.2)                (459.6)
                                  --------------------   --------------------
        Net Sales                         559.0                1,356.6
     Cost of goods sold                  (346.1)                (835.0)
                                  --------------------   --------------------
        Gross profit                      212.9                  521.6
     Marketing, general and
      administrative expenses            (182.6)                (436.6)
     Special items, net                   (10.2)                  (7.3)
     Equity income in  MillerCoors        97.1                      -
                                  --------------------   --------------------
        Operating income                  117.2                   77.7
     Interest expense, net                (19.9)                 (27.8)(a)
     Debt extinguishment costs                -                  (12.4)
     Other (expense) income, net          (18.5)                   4.6
                                  --------------------   --------------------
        Income from continuing
         operations before
          income taxes                     78.8                   42.1
     Income tax benefit                     1.3                    6.6
                                  --------------------   --------------------
        Income from continuing
         operations                        80.1                   48.7
     Loss from discontinued
      operations, net of tax               (3.9)                  (9.0)
                                  --------------------   --------------------
        Net income                         76.2                   39.7
     Less: Net income
      attributable to
      noncontrolling interests(b)          (0.5)                  (5.4)
                                  --------------------   --------------------
        Net income attributable
         to MCBC                          $75.7                  $34.3
                                  ====================   ====================
     Basic income (loss) per
      share:
        From continuing
         Operations
          attributable to MCBC            $0.43                  $0.24
        From discontinued
          operations
         attributable to MCBC             (0.02)                 (0.05)
                                  --------------------   --------------------
     Basic net income per share           $0.41                  $0.19
                                  ====================   ====================
     Diluted income (loss) per
      share:
        From continuing
          operations
         attributable to MCBC             $0.43                  $0.24
        From discontinued
         operations
         attributable to MCBC             (0.02)                 (0.05)
                                  --------------------   --------------------
     Diluted net income per share         $0.41                  $0.19
                                  ====================   ====================
    

    
     Weighted average shares
       - basic                            183.8                  181.0
     Weighted average shares
       - diluted                          184.9                  184.5
    

    
     Dividends per share                  $0.20                  $0.16
                                  ====================   ====================
     Amount attributable to MCBC
        Income from continuing
         operations, net of tax           $79.6                  $43.3
        Loss from discontinued
         operations, net of tax            (3.9)                  (9.0)
                                  --------------------   --------------------
        Net income
         attributable to MCBC             $75.7                  $34.3
    

    
    (a) On December 29, 2008, we adopted FASB Staff Position APB 14-1,
     "Accounting for Convertible Debt Instruments That May Be Settled in Cash
    upon Conversion (Including Partial Cash Settlement)" ("FSP APB 14-1").
    This FSP APB 14-1 clarifies that convertible debt instruments that may be
    settled in cash upon conversion, including partial cash settlement, should
    separately account for the liability and equity components in a manner
    that will reflect the entity's nonconvertible debt borrowing rate when
    interest cost is recognized in subsequent periods. Upon adopting FSP APB
    14-1, the provisions were retroactively applied. As a result, $4.0 and
    $3.9 million of additional non-cash interest expense was recorded in the
    first quarter of 2009 and 2008, respectively.
    

    
    (b) On December 29, 2008, MCBC adopted Statement of Financial Accounting
    Standards No. 160, "Noncontrolling Interests in Consolidated Financial
    Statements - an amendment of ARB No. 51,"  the provisions of which, among
    others, require that minority interests be renamed noncontrolling
    interests and that consolidated net income (loss) includes the amounts
    attributable to such noncontrolling interests for all periods presented.

    

    
     Molson Coors Brewing Company and Subsidiaries
     Table 7: Canada Segment Results of Operations
     (In Millions)
     (Unaudited)
    

    
                                   Thirteen Weeks Ended   Thirteen Weeks Ended
                                   --------------------   --------------------
                                     March 29, 2009         March 30, 2008
                                   --------------------   --------------------
     Volume in hectoliters                 1.763                 1.767
                                   ====================   ====================
     Sales                                $421.8                $499.8
     Excise taxes                          (97.1)               (116.2)
                                   --------------------   --------------------
        Net sales                          324.7                 383.6
     Cost of goods sold                   (187.4)               (216.2)
                                   --------------------   --------------------
        Gross profit                       137.3                 167.4
     Marketing, general and
      administrative
      expenses                             (83.5)               (106.6)
     Special items, net                     (8.1)                 (1.4)
                                   --------------------   --------------------
        Operating income                    45.7                  59.4
     Other income, net                       4.3                   3.3
                                   --------------------   --------------------
        Earnings before income taxes       $50.0                 $62.7

    


    
     Molson Coors Brewing Company and Subsidiaries
     Table 8: United States Segment Results of Operations
     (In Millions)
     (Unaudited)
                                   Thirteen Weeks Ended   Thirteen Weeks Ended
                                   --------------------   --------------------
                                     March 29, 2009(1)        March 30, 2008
                                   --------------------   --------------------
     Volume in hectoliters                     -                  6.509
                                   ====================   ====================
     Sales                                    $-                 $751.4
     Excise taxes                              -                 (101.4)
                                   --------------------   --------------------
        Net sales                              -                  650.0
     Cost of goods sold                        -                 (392.9)
                                   --------------------   --------------------
        Gross profit                           -                  257.1
     Marketing, general and
      administrative expenses                  -                 (197.6)
     Special items, net                        -                    8.0
     Equity income in MillerCoors           97.1                      -
                                   --------------------   --------------------
        Operating income                    97.1                   67.5
     Other income, net                         -                    2.4
                                   --------------------   --------------------
        Earnings before income
         taxes                             $97.1                  $69.9
                                   ====================   ====================
    

    
    (1) Reflects the  formation of MillerCoors on July 1, 2008.  Prior
    periods reflect results of the Company's pre-existing U.S. operations.

    


    
     Molson Coors Brewing Company and Subsidiaries
     Table 9: United Kingdom Segment Results of Operations
     (In Millions)
     (Unaudited)
                               Thirteen Weeks Ended    Thirteen Weeks Ended
                               --------------------    --------------------
                                  March 29, 2009          March 30, 2008
                               --------------------    --------------------
     Volume in
      hectoliters                      2.021                   2.346
                               ====================    ====================
     Sales                            $386.3                  $551.3
     Excise taxes                     (166.9)                 (240.8)
                               --------------------    --------------------
        Net sales                      219.4                   310.5
     Cost of goods sold               (149.9)                 (219.0)
        Gross profit                    69.5                    91.5
     Marketing, general
      and
      administrative
      expenses                         (67.0)                  (95.1)
     Special items, net                 (0.9)                   (2.1)
                               --------------------    --------------------
        Operating income                 1.6                    (5.7)
     Interest income, net                2.0                     2.8
     Other expense, net                 (1.0)                   (1.2)
                               --------------------    --------------------
        Earnings (loss)
         before income
         taxes                          $2.6                   $(4.1)

    

    
     Molson Coors Brewing Company and Subsidiaries
     Table 10: Global Markets and Corporate Results of Operations
     (In Millions)
     (Unaudited)
                               Thirteen Weeks Ended     Thirteen Weeks Ended
                               --------------------     --------------------
                                   March 29, 2009           March 30, 2008
                               --------------------     --------------------
    


    
     Volume in hectoliters              0.111                    0.088
                               ====================     ====================
     Net sales                          $14.9                    $12.5
     Cost of goods sold                  (8.8)                    (6.9)
                               --------------------     --------------------
        Gross profit                      6.1                      5.6
     Marketing, general
      and administrative
      expenses                          (32.1)                   (37.3)
     Special items, net                  (1.2)                   (11.8)
                               --------------------     --------------------
        Operating loss                  (27.2)                   (43.5)
     Interest expense, net              (21.9)                   (30.6)
     Debt extinguishment costs              -                    (12.4)
     Other (expense) income, net        (21.8)                     0.1
                               --------------------     --------------------
        Loss before income
         taxes                         $(70.9)                  $(86.4)

    

    
                           MillerCoors LLC (1)
                     Table 11: Results of Operations
                              (In Millions)
                               (Unaudited)
    

    
                                           Three Months Ended
                                      -------------------------------
                                      March 31, 2009   March 31, 2008
                                      ---------------  --------------
                                          Actual         Pro Forma
    

    
     Volume in hectoliters                 18.422           18.791
                                      ===============  ==============
     Sales                               $2,005.7         $1,947.1
     Excise taxes                          (289.8)          (294.7)
                                      ---------------  --------------
        Net sales                         1,715.9          1,652.4
     Cost of goods sold                  (1,049.9)        (1,017.0)
                                      ---------------  --------------
        Gross profit                        666.0            635.4
     Marketing, general and
      administrative expenses              (441.8)          (485.9)
     Special items, net                     (10.4)           (11.3)
                                      ---------------  --------------
        Operating income                    213.8            138.2
     Other (expense) income, net             (0.5)             2.6
                                      ---------------  --------------
        Income before income taxes          213.3            140.8
     Income tax expense                      (2.1)               -
                                      ---------------  --------------
        Net Income                          211.2            140.8
     Less: Net income attributable to
      noncontrolling interests               (5.2)            (4.2)
                                      ---------------  --------------
        Net income attributable
         to MillerCoors LLC                $206.0           $136.6
                                      ===============  ==============
    

    
    (1) Economic ownership of MillerCoors LLC is 58% held by SABMiller and 42%
    held by Molson Coors.  See Table 5 in the release for a reconciliation
    from MillerCoors net income to Molson Coors equity income in MillerCoors.

    

    
    Molson Coors Brewing Company and Subsidiaries
    Table 12: Condensed Consolidated Balance Sheets
    (In  Millions)
    (Unaudited)
    

    
                                                  As of
                                   --------------------------------------
                                   March 29, 2009       December 28, 2008
                                   -----------------    -----------------
    Assets
    

    
     Cash and cash
      equivalents                        $94.4                 $216.2
     Receivables, net                    529.5                  635.4
     Total inventories, net              189.5                  192.1
     Other, net                           75.1                   63.4
                                   -----------------    -----------------
          Total current
           assets                        888.5                1,107.1
    

    
     Properties, net                   1,131.2                1,301.9
     Goodwill and
      intangible assets,
      net                              5,126.3                5,221.4
     Investment in
      MillerCoors                      2,499.9                2,418.7
    Other                                253.4                  337.5
                                   -----------------    -----------------
          Total assets                $9,899.3              $10,386.6
                                   =================    =================
    Liabilities and equity
    

    
     Accounts payable                   $146.9                 $170.5
     Accrued expenses and
      other                              654.3                  815.5
     Short-term borrowings
      and current portion
      of long-term debt                    0.1                    0.1
                                   -----------------    -----------------
          Total current
           liabilities                   801.3                  986.1
    

    
     Long-term debt                    1,568.2                1,752.0
     Pension and
      post-retirement
      benefits                           448.2                  581.0
    Other                              1,006.0                1,028.1
                                   -----------------    -----------------
          Total liabilities            3,823.7                4,347.2
    

    
     Total MCBC
      stockholders' equity             6,071.5                6,055.4
     Noncontrolling
      interests                            4.1                  (16.0)
                                   -----------------    -----------------
          Total equity                 6,075.6                6,039.4
                                   -----------------    -----------------
          Total liabilities
           and equity                 $9,899.3              $10,386.6
                                   -----------------    -----------------

    


    
     Molson Coors Brewing Company and Subsidiaries
     Table 13: Condensed Consolidated Statements of Cash Flows
     (In Millions)
     (Unaudited)
    

    
                                                         Thirteen Weeks Ended
                                                        ----------------------
                                                        March 29,    March 28,
                                                           2009         2008
                                                        ----------------------
     Cash flows from operating activities:
      Net income                                           $76.2        $39.7
        Adjustments to reconcile net
         income to net cash used in
         operating activities:
            Depreciation and amortization                   44.4         82.3
            Equity income in MillerCoors                   (97.1)           -
            Distributions from MillerCoors                  84.0            -
            Change in working capital and
             other, net                                   (102.7)      (248.2)
                                                        -----------  ---------
      Net cash provided by (used in)
       operating activities                                  4.8       (126.2)
    

    
      Cash flows from investing activities:
         Additions to properties and
          intangible assets                                (19.6)       (69.5)
         Proceeds from sales of assets and
          businesses, net                                    2.1         28.3
         Deconsolidation Brewers Retail
          Inc.                                             (26.1)           -
         Investment in MillerCoors                         (67.2)           -
         Other, net                                          0.4         16.1
                                                        -----------  ---------
      Net cash used in investing activities               (110.4)       (25.1)
    

    
      Cash flows from financing activities:
         Exercise of stock options under
          equity compensation plans                          1.5         23.0
         Dividends paid                                    (36.8)       (33.1)
         Net borrowings (repayments) of debt                 1.8       (150.2)
         Other, net                                         20.0         54.7
                                                        -----------  ---------
      Net cash used in financing activities                (13.5)      (105.6)
    

    
      Cash and cash equivalents:
         Net decrease in cash and cash equivalents        (119.1)      (256.9)
         Effect of foreign exchange rate
          changes on cash and cash equivalents              (2.7)        (1.4)
         Balance at beginning of year                      216.2        377.0
                                                        -----------  ---------
      Balance at end of period                             $94.4       $118.7






    




For further information:

For further information: News Media, Paul de la Plante, +1-514-843-2332,
or Investor Relations, Dave Dunnewald, +1-303-927-2334, or Jane Armstrong,
+1-303-927-2394, all of Molson Coors Brewing Company Web Site:
http://www.molsoncoors.com                 http://www.coors.com

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