Molson Coors Reports Higher Second Quarter 2009 Income




    DENVER and MONTREAL, Aug. 3 /CNW/ -- Molson Coors Brewing Company (NYSE:  
TAP; TSX) today reported strong income growth for the second quarter.  Net
income attributable to Molson Coors increased 136.3 percent to $187.3 million
for the second quarter, up from $79.4 million a year ago.  Underlying
after-tax income(1) increased 20.6 percent to $205.4 million, or $1.11 per
diluted share, up from $170.3 million, or $0.92 per diluted share a year ago.

    Peter Swinburn, Molson Coors president and chief executive officer, said
"Our Company is off to a solid start in the first half of this year,
reflecting the benefit of our strong brands, strategic initiatives, and cost
reduction programs.  In the second quarter, we again achieved positive pricing
and local currency profit growth in each of our major markets, which helped
offset the impact of lower volume, increased input costs and unfavorable
currency movements.  While we expect the balance of 2009 to present challenges
in the areas of competitive price discounting in Canada and cost inflation
across our company, we are addressing these issues by staying focused on
building strong brands, reducing costs, generating cash, and driving
shareholder value."
    

    Second Quarter Highlights

    
    Key operating and financial highlights for the Company's fiscal second
quarter ended June 28, 2009, compared to the fiscal second quarter ended June
29, 2008, include the following:
    
    --  Underlying after-tax income(1) increased 20.6 percent to $205.4
        million, or $1.11 per diluted share, up from $170.3 million, or $0.92
        per diluted share a year ago.  This earnings performance was driven by
        increased beer pricing and substantial cost reductions across the
        Company, which were partially offset by continuing unfavorable
currency
        movements, cost inflation, and lower worldwide volume.
    --  Second quarter 2009 results include the impact of unfavorable foreign
        currency movements, which decreased total underlying pretax income
        approximately $21 million versus a year ago.
    --  Excluding the impact of foreign currency, the Company's underlying
        income increased approximately 30 percent in the quarter.
    --  Molson Coors worldwide beer volume decreased 3.2 percent on a pro
forma
        basis, due to poor weather in key geographies, a weak global economy,
        and the Company's strategy in the U.K. to emphasize revenue growth
over
        low-margin volume growth.

    --  Worldwide Coors Light volume grew 3 percent from a year ago.


    
    The Company's effective tax rate during the second quarter 2009 for
income from continuing operations was 20 percent on a reported basis, and 22
percent on an underlying basis.  The Company estimates that its full-year 2009
effective tax rate will be in the range of 10 percent to 14 percent.

    During the quarter, Molson Coors achieved an incremental $32 million of
cost savings as part of its three-year, $250 million Resources for Growth
(RFG) cost savings program.  Savings from the RFG program during the past 2
1/2 years now total $229 million.  These cost savings include the company's 42
percent share of RFG cost savings that were achieved by MillerCoors, which
equaled $3 million in the second quarter.

    MillerCoors achieved $60 million in synergies in the second quarter,
largely due to the network optimization savings realized from moving
production of Coors brands into former Miller breweries, continued realization
of organizational savings, and savings in marketing investment.  Molson Coors'
42 percent share of these synergies is $25 million.  Year-to-date, MillerCoors
has delivered $110 million in synergies, and the Company now expects to
achieve $260 million of cumulative synergies by the end of calendar 2009,
surpassing its original commitment 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 13.533
million hectoliters in the quarter, 3.2 percent lower versus the prior year on
a pro forma basis, as shown in Table 1 below.
    

    Molson Coors Brewing Company
    Table 1:  2009 Second Quarter Worldwide Beer Volume
    (In Millions of Hectoliters)
    

    
                    Thirteen Weeks Ended          Thirteen Weeks Ended
                     -----------------             -----------------
                     June 28, June 29,            June 28, June 29,
                       2009     2008    % Change   2009     2008     % Change
                     -------- --------   -------- -------- --------  --------
                      Actual Pro forma(1)         Actual   Actual
      Financial
       Volume:         5.005   5.408      (7.5%)   5.005   13.679      (63.4%)
      Royalty Volume:  0.077   0.067      14.9%    0.077    0.067       14.9%
                       -----   -----               -----    -----
    Owned Volume:      5.082   5.475      (7.2%)   5.082   13.746      (63.0%)
      Proportionate
       Share of
       Equity
       Investment
       Sales-to-
       Retail:         8.451   8.509      (0.7%)   8.451   0.099          NM
                       -----   -----               -----   -----
    Total Worldwide
     Beer Volume:     13.533  13.984      (3.2%)  13.533  13.845        (2.3%)
                      ======  ======              ======  ======
    --------------------------------------------------------------------------
    Notes:
    ------
    NM = Not Meaningful
    (1)  Reflects the elimination of the U.S. segment volume reported for the
    13 weeks ended June 29, 2008, and the addition of Molson Coors Brewing
    Company's proportionate share of MillerCoors and Modelo Molson sales-to-
    retail for the periods presented, adjusted for comparable trading days, if
    applicable.

    Business Segments

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

    Canada Business

    
    Canada underlying pretax income in local currency grew 2 percent versus a
year ago as a result of positive net pricing and the benefit of cost savings
initiatives, which more than offset inflation impacts in the quarter.  On a
reported basis, Canada underlying pretax income was $137.3 million in the
second quarter, 11.0 percent lower than a year ago as local currency profit
growth was offset by a 13 percent, or $18 million, year-over-year decline in
the Canadian dollar versus the U.S. dollar.

    Canada sales-to-retail (STRs) decreased 0.5 percent in the second quarter
versus last year.  Strategic brands increased almost 2 percent, led by
high-single-digit growth of Coors Light and solid growth by Rickard's.  Molson
Canadian declined at a mid-single-digit rate versus prior year.  Canada beer
industry volumes increased an estimated 1.8 percent in the quarter.

    Canada sales volume was 2.4 million hectoliters, down 2.9 percent versus
2008.  Comparable(2) net sales per hectoliter increased 2.6 percent in local
currency, driven by front-line price increases in all major markets and
improved sales mix, partially offset by promotional activity across Canada.

    Cost of goods sold per hectoliter increased 1.7 percent on a comparable
basis in local currency, due to a 2   percent inflationary increase from
commodities, packaging materials, distribution, and other input costs, and a 2
percent increase from overhead costs and ongoing product mix shifts.  Savings
from cost reduction initiatives more than offset inflation and reduced cost of
goods sold per hectoliter by 3 percentage points.

    Comparable marketing, general and administrative expenses decreased
approximately 1 percent in local currency, driven by lower overhead costs.
    

    Other income increased $3.9 million due to foreign currency gains.

    United States Business (MillerCoors)(3)

    
    Molson Coors underlying U.S. segment pretax income increased 26.5 percent
to $142.7 million in the second quarter due to strong underlying income growth
by MillerCoors.  U.S. segment results include the Company's 42 percent share
of second quarter 2009 net income attributable to MillerCoors and various
adjustments for the equity income calculation under U.S. GAAP, which are then
compared to the year-earlier results reported by the legacy Coors business.
    

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

    
    For the quarter, underlying net income attributable to MillerCoors,
excluding special items, increased by 16.4 percent to $325.3 million versus
the prior year pro forma quarter.  This earnings growth was driven by strong
net revenue growth, cost management and continued synergy delivery.

    In a soft beer market, MillerCoors domestic STRs were down 0.8 percent
versus the prior year pro forma quarter due to a decline in Miller Lite STRs
and softness in above premium brands, mostly offset by positive results in
five of the six focus brands.  The six national focus brands increased STRs by
1.3 percent, led by Coors Light, MGD 64, and Keystone Light.  Domestic
sales-to-wholesalers (STWs) declined 1.1 percent, driven by lower STRs and a
slight reduction in distributor inventories.

    MillerCoors total net sales increased by 1.6 percent to $2.14 billion
versus the prior pro forma quarter.  Excluding contract brewing and
company-owned distributor sales, net sales increased 1.7 percent to $2.00
billion.  Third-party contract brewing volumes declined 6.5 percent, though
profits were in line with the prior year comparable quarter.

    Pricing remained strong in the second quarter as domestic net sales per
hectoliter, excluding contract brewing and company-owned distributor sales,
increased by 3.0 percent based on 2008 price increases.

    Though MillerCoors continues to realize supply-chain-related synergies
and deliver savings from its cost leadership programs, cost of goods sold per
hectoliter increased by 5.1 percent due to significant prior year hops sales,
as well as increased brewing and packaging material costs this year, primarily
glass, aluminum and barley.

    For the quarter, marketing, general and administrative costs decreased by
10.8 percent, driven primarily by synergies and other cost savings.

    Depreciation and amortization expense for MillerCoors in the second
quarter was approximately $72 million, and additions to tangible and
intangible assets totaled $120 million.
    

    United Kingdom Business

    
    The U.K. business reported underlying pretax income of $36.8 million in
the second quarter, an increase of $15.3 million, or 70.1 percent, versus the
same quarter last year.  These results include the impact of a 22 percent
decline in the value of the British pound versus the U.S. dollar, which
reduced underlying pretax income by approximately $10 million.  In local
currency, the U.K. business underlying pretax earnings were up nearly 118
percent.  This solid quarterly performance was driven by positive results from
the strategic actions our U.K. team has taken in the past year, including
supplier negotiations leveraging our contract brewing arrangement and brand
building efforts, which allowed us to forgo low-margin volume.

    U.K. owned-brand volume decreased 12.4 percent during the quarter due to
soft industry performance and the Company's strategy to forgo low-margin
volume.  The U.K. beer industry declined approximately 5 percent in the second
quarter, reflecting a weak economy in that market.

    In local currency, comparable U.K. net sales per hectoliter of owned
products increased 19.8 percent, approximately three-quarters driven by higher
net pricing in all channels, and the balance of the increase attributable to
positive sales mix.

    Comparable cost of goods sold per hectoliter of owned brands was
virtually unchanged in local currency in the second quarter, reflecting higher
input cost inflation and fixed cost de-leverage as a result of lower volumes,
offset by favorable channel mix and cost-reduction savings.

    Marketing, general and administrative expense increased 10.1 percent in
local currency due to higher marketing and incentive compensation expenses in
the second quarter.
    

    Global Markets Business and Corporate

    
    The underlying pretax loss for Global Markets and Corporate was $52.1
million, a 14.6 percent reduction versus the second quarter of 2008.

    The Company's Global Markets business grew volume more than 18 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
$12.6 million in the quarter, an increase of $3.3 million versus a year ago.

    Corporate general and administrative expense was $30.6 million in the
second quarter, an increase of $4.7 million, driven by higher incentive
compensation and project spending this year.

    Corporate net interest expense was $22.0 million in the second quarter, a
decrease of $7.9 million compared to a year ago, with approximately $4 million
of this reduction attributable to foreign currency movements and nearly all
the balance primarily due to BRI deconsolidation.  In the quarter, Corporate
other expense of $8.9 million was driven by a one-time mark-to-market expense
related to the Foster's cash-settled total-return swap.
    
    Special and Other One-Time Items

    
    During the second quarter 2009, the Company reported net special charges
of $7.1 million pretax, which was composed primarily of $5.7 million of costs
associated with the Cobra brand acquisition and $1.1 million of restructuring
costs in the U.K.

    Other one-time items in the quarter included a $12.9 million non-cash
mark-to-market expense in corporate other related to the cash-settled
total-return swap the Company arranged with respect to Foster's common stock
in 2008, as well as $1.0 million to establish an environmental litigation
reserve.

    During the second quarter of 2009, MillerCoors reported special charges
totaling $20.4 million, including a charge for pension curtailment and
integration expenses.  This equates to $8.6 million at Molson Coors' 42
percent economic ownership share.

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

    Discontinued Operations

    
    The Company reports results associated with its former Brazilian unit,
Cervejarias Kaiser ("Kaiser"), as discontinued operations.  In the second
quarter, gains from small reductions in liabilities were offset by losses from
foreign exchange.
    

    2009 Second 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 second 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 November 3, 2009.  The Company will also post this release and related
financial statements on its website today.
    

    Footnotes:

    
    (1) 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 second quarter of 2009, the Company
excluded one-time expenses, particularly related to MillerCoors, the Foster's
cash-settled total-return swap, and an environmental liability reserve, as
well as net special charges of $7.1 million pretax.  For further details,
please see the section "Special and Other One-Time Items", along with tables
for reconciliations to the nearest U.S. GAAP measures.  All $ amounts are in
U.S. Dollars.

    (2)  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 also 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 is excluded from Canada results and is now reported by MillerCoors.

    (3)  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 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 second
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 Income in MillerCoors  and Non-GAAP U.S. Segment
Underlying Pretax Income (see Table 5).
    

    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.
    

    Reconciliations to Nearest U.S. GAAP Measures

    Molson Coors Brewing Company
    Table 2:  2009 Second Quarter Underlying After-Tax Income
    (After-Tax Income From Continuing Operations, Excluding Special and
     Other One-time Items)
    (In Millions of $US, Except Per Share Data)
    (Note: Some numbers may not sum due to rounding.)
    

    
                                                      2009 2nd Q   2008 2nd Q
                                                      -----------  ----------
    U.S. GAAP: Income from continuing
     operations attributable to MCBC, net
     of tax:                                              187.3        91.8
    -------------------------------------
                                      Per diluted share:  $1.01       $0.49
    Add back: Pretax special
     items - net                                            7.1       103.9
    Add back: Environmental litigation
     reserve (1)                                            1.0           -
    Add back: Loss related to the cash-
     settled total return swap (1)                         12.9           -
    Add back: Proportionate share of
     MillerCoors pretax special items -
     net (2)                                                8.6           -
    (Minus): Tax effects related to
     special and other one-time items                     (11.5)      (25.4)
    Non-GAAP: Underlying after-tax
     income:                                              205.4       170.3
    

    
                                      Per diluted share:  $1.11       $0.92
    -------------------------------------------------------------------------
    Notes:
    ------
    (1) Included in Other Income (Expense)
    (2) Included in Equity Income in MillerCoors, but excluded from non-GAAP
    underlying pretax income.
    



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

    
                          ------------------------------------  ------------
                                        Business                    Total
                          ------------------------------------  ------------
                                                     Global
                                                   Markets and
                          Canada    U.S.   U.K.    Corporate    Consolidated
    -------------------   ------    ----   ----   ------------  ------------
    U.S. GAAP: 2009 2nd
     Q Income (loss)
     from continuing
     operations before
     income taxes         $136.4  $134.1  $30.0         $(65.4)       $235.1
    -------------------
    Add back/(Minus):
     Pretax special
     items -net              0.9       -    6.8           (0.6)          7.1
    Add back:
     Environmental
     litigation reserve(1)     -       -      -            1.0           1.0
    Add back: Gain
     related to the cash-
     settled total
     return swap (1)           -       -      -           12.9          12.9
    Add back:
     Proportionate
     share of
     MillerCoors
     pretax special
     items -net (2)            -     8.6      -              -           8.6
    Non-GAAP: 2009 2nd Q
     underlying pretax
     income (loss)        $137.3  $142.7  $36.8         $(52.1)       $264.7
    --------------------  ------  ------  -----         ------        ------
    Percent change
     2009 2nd Q vs.
     2008 2nd Q
     underlying pretax
     income (loss)         -11.0%   26.5%  70.1%         -14.6%         16.3%
    ------------------     -----    ----   ----          -----          ----
    U.S. GAAP: 2008 2nd
     Q Income (loss)
     from continuing
     operations before
     income taxes         $153.9   $35.4  $18.4         $(84.0)       $123.7
    -------------------
    Add back: Pretax
     special items - net     0.5    77.3    3.1           23.0         103.9
    Non-GAAP: 2008 2nd Q
     underlying pretax
     income (loss)        $154.4  $112.7  $21.5         $(61.0)       $227.6
    --------------------  ------  ------  -----         ------        ------
    Notes:
    ------
    (1) Included in Other Income (Expense)
    (2) Included in Equity Income in MillerCoors, but excluded from non-GAAP
    underlying pretax income.
    



    
    MillerCoors LLC
    Table 4:  2009 Second Quarter Underlying Net Income
    (Net Income, Excluding Special Items)
    (In Millions)
                        Three Months Ended           Six Months Ended
                    --------------------------- ---------------------------
                    June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008
                    ------------- ------------- ------------- -------------
                                    Pro Forma                   Pro Forma
    U.S. GAAP -
     Net Income
      attributable
      to MillerCoors
      LLC:               $304.9        $174.6        $510.9        $311.2
     Add back:
      Special
      items, net           20.4         104.8          30.8         116.1
                           ----         -----          ----         -----
    Non-GAAP -
     Underlying
     net income:         $325.3        $279.4        $541.7        $427.3
                         ======        ======        ======        ======
    


    
    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.
    



    
    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
    (In Millions)
    (Note: Some numbers may not sum due to rounding.)
    

    
                                           Thirteen Weeks   Twenty-Six Weeks
                                                Ended             Ended
                                            --------------   -----------------
                                            June 28, 2009     June 28, 2009
                                            -------------     -------------
      MillerCoors Net Income                     $304.9           $510.9
        Multiply: MCBC economic
         interest % in MillerCoors                   42%              42%
                                                    ---              ---
        MCBC proportionate share of
         MillerCoors net income                  $128.1           $214.6
        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)                  3.9              6.9
        Add: Share-based compensation
         adjustment (3)                             2.1              2.4
                                                    ---              ---
      Equity Income in MillerCoors
       (reported)                                $134.1           $231.2
                                                 ======           ======
          Add: Proportionate share
           of MillerCoors special
           items (4)                                8.6             12.9
          (Minus): Accounting policy
           elections (1)                              -             (7.3)
                                                    ---             ----
      U.S. Segment Underlying Pretax
       Income (Non-GAAP)                         $142.7           $236.8
                                                 ======           ======
    

    
    ------------------------------------------------------------------------
    Notes:
    ------
    (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.
    (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 $644 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 Q2 2009 Special Items of $20.4 million, multiplied by
    MCBC's proportionate share of MillerCoors at 42%, equals $8.6 million.
    MillerCoors first half of 2009 Special Items of $30.8 million, multiplied
    by MCBC's proportionate share of MillerCoors at 42%, equals $12.9 million.
    



    
    Molson Coors Brewing Company and Subsidiaries
    Table 6:  Condensed Consolidated Statements of Operations
    (In Millions, Except Per Share Data)
    (Unaudited)
    


    
                       Thirteen Weeks Ended  Twenty-Six Weeks Ended
                       --------------------  ----------------------
                        June 28,   June 29,   June 28,   June 29,
                          2009       2008       2009       2008
                       ---------  ---------  ---------  ---------
    

    
    Volume in
     hectoliters          5.005     13.679      8.901     24.388
                          =====     ======      =====     ======
    

    
    Sales              $1,160.4   $2,359.4   $1,984.6   $4,175.6
    Excise taxes         (361.5)    (602.0)    (626.7)  (1,061.6)
                         ------     ------     ------   --------
      Net Sales           798.9    1,757.4    1,357.9    3,114.0
    Cost of goods
     sold                (432.6)  (1,033.6)    (778.7)  (1,868.6)
                         ------   --------     ------   --------
      Gross profit        366.3      723.8      579.2    1,245.4
    Marketing,
     general and
     administrative
     expenses            (230.0)    (463.2)    (412.6)    (899.8)
    Special items,
     net                   (7.1)    (103.9)     (17.3)    (111.2)
    Equity income
     in MillerCoors       134.1          -      231.2          -
                          -----          -      -----          -
      Operating
       income             263.3      156.7      380.5      234.4
    Interest
     expense, net (1)     (19.9)     (27.0)     (39.8)     (54.8)
    Debt
     extinguishment
     costs                    -          -          -      (12.4)
    Other expense,
     net                   (8.3)      (6.0)     (26.8)      (1.4)
                           ----       ----      -----       ----
      Income from
       continuing
       operations
       before income
       taxes              235.1      123.7      313.9      165.8
    Income tax
     expense              (47.3)     (26.5)     (46.0)     (19.9)
                          -----      -----      -----      -----
      Income from
       continuing
       operations         187.8       97.2      267.9      145.9
    Loss from
     discontinued
     operations,
     net of tax               -      (12.4)      (3.9)     (21.4)
                              -      -----       ----      -----
      Net income          187.8       84.8      264.0      124.5
    Less: Net income
     attributable to
     noncontrolling
     interests (2)         (0.5)      (5.4)      (1.0)     (10.8)
                           ----       ----       ----      -----
      Net income
       attributable
       to MCBC           $187.3      $79.4     $263.0     $113.7
                         ======      =====     ======     ======
    

    
    Basic income
     (loss) per share:
      From
       continuing
       operations
       attributable
       to MCBC            $1.02      $0.50      $1.45      $0.75
      From
       discontinued
       operations
       attributable
       to MCBC                -      (0.07)     (0.02)     (0.12)
                          -----      -----      -----      -----
    Basic net
     income per
     share                $1.02      $0.43      $1.43      $0.63
                          =====      =====      =====      =====
    Diluted income
     (loss) per
     share:
      From
       continuing
       operations
       attributable
       to MCBC            $1.01      $0.49      $1.44      $0.73
      From
       discontinued
       operations
       attributable
       to MCBC                -      (0.07)     (0.02)     (0.12)
                           ----      -----      -----      -----
    Diluted net
     income per
     share                $1.01      $0.42      $1.42      $0.61
                          =====      =====      =====      =====
    

    
    Weighted
     average
     shares - basic       184.2      182.4      184.0      181.7
    Weighted
     average
     shares -
     diluted              185.4      186.0      185.2      185.0
    

    
    Dividends per
     share                $0.24      $0.20      $0.44      $0.36
                          =====      =====      =====      =====
    

    
    Amount
     attributable
     to MCBC
      Income from
       continuing
       operations,
       net of tax        $187.3      $91.8     $266.9     $135.1
      Loss from
       discontinued
       operations,
       net of tax             -      (12.4)      (3.9)     (21.4)
                           ----      -----       ----      -----
      Net income
       attributable
       to MCBC           $187.3      $79.4     $263.0     $113.7
                         ======      =====     ======     ======
    

    
    --------------------------------------------------------------------------
    Notes:
    ------
    (1) On December 29, 2008, we adopted Financial Accounting Standards Board
    Staff Position Accounting Principles Board 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, $3.9 million and $7.8
    million of additional non-cash interest expense was recorded in the second
    quarter and first half of 2008, respectively.  During the second quarter
    and first half of 2009, we recorded $4.1 million and $8.1 million of
    additional non-cash interest expense, respectively.
    (2) 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  Twenty-Six Weeks Ended
                                  --------------------  ----------------------
                                    June 28,   June 29,   June 28,  June 29,
                                      2009       2008       2009      2008
                                   ---------  ---------  --------  ---------
    

    
    Volume in hectoliters             2.402      2.475     4.165      4.242
                                      =====      =====     =====      =====
    

    
    Sales                            $614.3     $695.5  $1,036.1   $1,195.3
    Excise taxes                     (143.3)    (162.9)   (240.4)    (279.1)
                                     ------     ------    ------     ------
      Net sales                       471.0      532.6     795.7      916.2
    Cost of goods sold               (231.1)    (258.5)   (418.5)    (474.7)
                                     ------     ------    ------     ------
      Gross profit                    239.9      274.1     377.2      441.5
    Marketing, general and
     administrative expenses         (103.8)    (117.1)   (187.3)    (223.7)
    Special items, net                 (0.9)      (0.5)     (9.0)      (1.9)
                                       ----       ----      ----       ----
      Operating income                135.2      156.5     180.9      215.9
    Other income (expense), net         1.2       (2.6)      5.5        0.7
                                        ---       ----       ---        ---
      Earnings before income taxes   $136.4     $153.9    $186.4     $216.6
                                     ======     ======    ======     ======
    



    
    Molson Coors Brewing Company and Subsidiaries
    Table 8:  United States Segment Results of Operations
    (In Millions)
    (Unaudited)
    


    
                                  Thirteen Weeks Ended  Twenty-Six Weeks Ended
                                  --------------------  ----------------------
                                    June 28,  June 29,   June 28,  June 29,
                                     2009(1)    2008      2009(1)    2008
                                    --------- ---------  --------- --------
    

    
    Volume in hectoliters                   -     8.271          -   14.779
                                          ===     =====        ===   ======
    

    
    Sales                                  $-    $970.3         $- $1,721.7
    Excise taxes                            -    (128.5)         -   (229.9)
                                          ---    ------        ---   ------
      Net sales                             -     841.8          -  1,491.8
    Cost of goods sold                      -    (514.4)         -   (907.3)
                                          ---    ------        ---   ------
      Gross profit                          -     327.4          -    584.5
    Marketing, general and
     administrative expenses                -    (214.6)         -   (412.2)
    Special items, net                      -     (77.3)         -    (69.3)
    Equity income in MillerCoors        134.1         -      231.2        -
                                        -----      ----      -----     ----
      Operating income                  134.1      35.5      231.2    103.0
    Other (expense) income, net             -      (0.1)         -      2.3
                                          ---      ----        ---      ---
      Earnings before income taxes     $134.1     $35.4     $231.2   $105.3
                                       ======     =====     ======   ======
    

    
    -------------------------------------------------------------------------
    Notes:
    ------
    (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  Twenty-Six Weeks Ended
                                  --------------------  ----------------------
                                    June 28,  June 29,   June 28,   June 29,
                                      2009      2008       2009       2008
                                    --------  ---------  ---------  --------
    

    
    Volume in hectoliters              2.475      2.824      4.496     5.170
                                       =====      =====      =====     =====
    

    
    Sales                             $526.1     $676.1     $912.4  $1,227.4
    Excise taxes                      (216.4)    (309.0)    (383.3)   (549.8)
                                      ------     ------     ------    ------
      Net sales                        309.7      367.1      529.1     677.6
    Cost of goods sold                (191.5)    (251.6)    (341.4)   (470.6)
                                      ------     ------     ------    ------
      Gross profit                     118.2      115.5      187.7     207.0
    Marketing, general and
     administrative expenses           (82.9)     (96.4)    (149.9)   (191.5)
    Special items, net                  (6.8)      (3.1)      (7.7)     (5.2)
                                        ----       ----       ----      ----
      Operating income                  28.5       16.0       30.1      10.3
    Interest income, net                 2.1        2.9        4.1       5.7
    Other expense, net                  (0.6)      (0.5)      (1.6)     (1.7)
                                        ----       ----       ----      ----
      Earnings before income taxes     $30.0      $18.4      $32.6     $14.3
                                       =====      =====      =====     =====
    



    
    Molson Coors Brewing Company and Subsidiaries
    Table 10:  Global Markets and Corporate Results of Operations
    (In Millions)
    (Unaudited)
    



    
                                  Thirteen Weeks Ended  Twenty-Six Weeks Ended
                                  --------------------  ----------------------
                                    June 28,   June 29,  June 28,   June 29,
                                       2009       2008      2009       2008
                                     --------   --------- --------   ---------
    

    
    Volume in hectoliters              0.128      0.109     0.240      0.197
                                       =====      =====     =====      =====
    

    
    Sales                              $20.0      $17.6     $36.1      $31.3
    Excise taxes                        (1.8)      (1.7)     (3.0)      (2.9)
                                        ----       ----      ----       ----
    Net sales                           18.2       15.9      33.1       28.4
    Cost of goods sold                 (10.0)      (9.1)    (18.8)     (16.0)
                                       -----       ----     -----      -----
      Gross profit                       8.2        6.8      14.3       12.4
    Marketing, general and
     administrative expenses           (43.3)     (35.1)    (75.4)     (72.4)
    Special items, net                   0.6      (23.0)     (0.6)     (34.8)
                                         ---      -----      ----      -----
      Operating loss                   (34.5)     (51.3)    (61.7)     (94.8)
    Interest expense, net              (22.0)     (29.9)    (43.9)     (60.5)
    Debt extinguishment costs              -          -         -      (12.4)
    Other expense, net                  (8.9)      (2.8)    (30.7)      (2.7)
                                        ----       ----     -----       ----
      Loss before income taxes        $(65.4)    $(84.0)  $(136.3)   $(170.4)
                                      ======     ======   =======    =======
    



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

    
                                  Three Months Ended     Six Months Ended
                                 --------------------  --------------------
                                  June 30,   June 30,   June 30,   June 30,
                                    2009       2008       2009       2008
                                 ---------  ---------  ---------  ---------
                                   Actual   Pro Forma    Actual   Pro Forma
    

    
    Volume in hectoliters           22.938     23.326     41.360     42.117
                                    ======     ======     ======     ======
    

    
    Sales                         $2,499.4   $2,469.7   $4,505.1   $4,416.8
    Excise taxes                    (362.7)    (365.7)    (652.5)    (660.4)
                                    ------     ------     ------     ------
      Net sales                    2,136.7    2,104.0    3,852.6    3,756.4
    Cost of goods sold            (1,302.3)  (1,259.8)  (2,352.2)  (2,276.8)
                                  --------   --------   --------   --------
      Gross profit                   834.4      844.2    1,500.4    1,479.6
    Marketing, general and
     administrative expenses        (500.6)    (561.2)    (942.4)  (1,047.1)
    Special items, net               (20.4)    (104.8)     (30.8)    (116.1)
                                     -----     ------      -----     ------
      Operating income               313.4      178.2      527.2      316.4
    Other (expense)
     income, net                      (0.2)       2.2       (0.7)       4.8
                                      ----        ---       ----        ---
      Income from continuing
       operations before
       income taxes                  313.2      180.4      526.5      321.2
    Income tax expense                (2.5)         -       (4.6)         -
                                      ----        ---       ----        ---
      Income from continuing
       operations                    310.7      180.4      521.9      321.2
    Less: Net income
     attributable to
     noncontrolling interests         (5.8)      (5.8)     (11.0)     (10.0)
                                      ----       ----      -----      -----
      Net income attributable
       to  MillerCoors LLC          $304.9     $174.6     $510.9     $311.2
                                    ======     ======     ======     ======
    

    
    --------------------------------------------------------------------------
    Notes:
    ------
    (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
                                            ---------------------------------
                                            June 28, 2009   December 28, 2008
                                            -------------   -----------------
    Assets
    

    
     Cash and cash equivalents                     $296.2              $216.2
     Receivables, net                               732.2               635.4
     Inventories, net                               234.4               192.1
     Other, net                                      70.5                63.4
                                                     ----                ----
       Total current assets                       1,333.3             1,107.1
    

    
     Properties, net                              1,242.3             1,301.9
     Goodwill and intangibles, net                5,618.2             5,221.4
     Investment in MillerCoors                    2,557.9             2,418.7
     Other                                          294.5               337.5
                                                    -----               -----
       Total assets                             $11,046.2           $10,386.6
                                                =========           =========
    

    Liabilities and equity

    
     Accounts payable                              $156.7              $170.5
     Accrued expenses and other                     941.7               815.5
     Short-term borrowings and current
      portion of long-term debt                       0.1                 0.1
                                                      ---                 ---
       Total current liabilities                  1,098.5               986.1
    

    
     Long-term debt                               1,628.6             1,752.0
     Pension and post-retirement benefits           492.8               581.0
     Other                                        1,132.0             1,028.1
                                                  -------             -------
       Total liabilities                          4,351.9             4,347.2
    

    
     Total MCBC stockholders' equity              6,680.1             6,055.4
     Noncontrolling interests                        14.2               (16.0)
                                                     ----               -----
       Total equity                               6,694.3             6,039.4
                                                  -------             -------
       Total liabilities and equity             $11,046.2           $10,386.6
                                                =========           =========
    



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

    
                                                Twenty-six Weeks Ended
                                             ----------------------------
                                             June 28, 2009  June 29, 2008
                                             -------------  -------------
    

    
    Cash flows from operating activities:
     Net income                                   $264.0         $124.5
      Adjustments to reconcile net income
       to net cash provided by
       operating activities:
         Depreciation and amortization              88.8          167.2
         Equity income in MillerCoors             (231.2)             -
         Distributions from MillerCoors            250.3              -
          Change in working capital and
          other, net                               (19.4)        (131.1)
                                                   -----         ------
      Net cash provided by operating
      activities                                   352.5          160.6
    

    
      Cash flows from investing
       activities:
        Additions to properties and
         intangible assets                          (45.2)        (136.4)
        Proceeds from sales of assets and
         businesses, net                              2.6           33.5
        Acquisition of businesses                   (19.6)             -
        Investment in MillerCoors, net             (119.3)             -
        Other, net                                  (28.8)           8.6
                                                   -----            ---
      Net cash used in investing
       activities                                 (210.3)         (94.3)
    

    
      Cash flows from financing
       activities:
        Exercise of stock options under
         equity compensation plans                  13.4           45.9
        Dividends paid                             (81.4)         (65.5)
        Net repayments of debt                      (0.3)        (147.6)
        Other                                        6.3            9.3
                                                     ---            ---
      Net cash used in financing
       activities                                  (62.0)        (157.9)
    

    
     Cash and cash equivalents:
       Net increase (decrease) in cash and
        cash equivalents                            80.2          (91.6)
       Effect of foreign exchange rate
        changes on cash and cash
        equivalents                                 (0.2)          (1.0)
       Balance at beginning of year                216.2          377.0
                                                   -----          -----
     Balance at end of period                     $296.2         $284.4
                                                  ======         ======


    




For further information:

For further information: News Media, Colin Wheeler, +1-303-927-2443, or
Investor Relations, Dave Dunnewald, +1-303-927-2334, or  Leah Ramsey,
+1-303-927-2397, all of Molson Coors Brewing Company Web Site:
http://www.coors.com

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