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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Avon Products Inc | NYSE:AVP | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 5.60 | 0 | 01:00:00 |
NEW YORK, April 30, 2013 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today reported first-quarter 2013 results. "Our first-quarter results reflect continued signs of stabilization, including early progress in our cost reduction efforts," said Sheri McCoy, Chief Executive Officer. "I'm pleased with the performance of our Latin America and Europe, Middle East & Africa regions, particularly in Brazil and Russia. The teams there are focused on ensuring that this performance is sustainable. As for our other markets, there remains work to be done, particularly in the U.S."
First-Quarter 2013 (compared with first-quarter 2012)
For the first quarter of 2013, total revenue of $2.5 billion decreased 4%, but was relatively unchanged in constant dollars. Total units decreased 3% and price/mix increased 3% during the quarter. Active Representatives(2) increased 1%.
Avon Beauty sales declined 5%, or 1% in constant dollars. On a reported basis, fragrance grew 1%, while personal care, color and skincare declined 3%, 6% and 12%, respectively. On a constant-dollar basis, fragrance increased 6% and personal care was unchanged, while color and skincare declined 2% and 9%, respectively.
First-quarter 2013 gross margin was 62.1%. Adjusted gross margin was 62.5%, 160 basis points higher than the prior-year quarter, primarily due to lower freight costs, as well as lower material costs, including the benefits from productivity initiatives.
Operating profit was $172 million and operating margin was 6.9% in the quarter. Operating profit was negatively impacted by $20 million associated with costs to implement ("CTI") restructuring and $13 million associated with the highly inflationary accounting for a 32% devaluation of the Venezuelan currency. Adjusted operating profit was $206 million and adjusted operating margin was 8.3%, 450 basis points higher than the first quarter of 2012. The increase was due to gross margin improvement, lower advertising expenses, primarily in Brazil, and lower professional fees associated with the Foreign Corrupt Practices Act ("FCPA") investigation and compliance reviews. Additionally, operating margin benefited from lower bad debt expenses, primarily in South Africa, due to a one-time adjustment in the prior-year quarter.
During the first-quarter 2013, as part of the Company's refinancing activities, the Company prepaid the $535 million of outstanding private notes plus a make-whole premium. Additionally, the Company repaid $380 million of the outstanding term loan principal. These repayments resulted in a $73 million pre-tax loss on extinguishment of debt.
In addition to the impact to operating profit, the 32% Venezuelan currency devaluation resulted in a one-time charge of $34 million in other expense, net, associated with monetary net assets and $17 million in income taxes, associated with deferred tax benefits.
First-quarter 2013's effective tax rate was 146.1%, versus 32.3% in the first quarter of 2012. The tax rate was unfavorably impacted by the devaluation of the Venezuelan currency. On an adjusted basis, the effective tax rate was 33.6%, versus 32.9% in the first quarter of 2012.
First-quarter 2013 net loss was $13 million, or a loss of $.03 per share. Adjusted net income was $112 million, or $.26 per share.
Operating activities used $119 million of cash during the first quarter of 2013 compared with $33 million in the first quarter of 2012, unfavorably impacted primarily by the make-whole premium on the Company's private notes, higher payments for employee incentive compensation and restructuring, and higher inventory levels. Partially offsetting these items were higher levels of accounts payable and lower income tax payments. The overall net cash provided in the first quarter was $279 million, which compares with the use of $30 million in first-quarter 2012, and this was primarily due to proceeds related to the issuance of debt, partially offset by debt repayment and cash used for operations.
Avon's net debt (total debt less cash) for the first quarter of 2013 was $2.1 billion, up $160 million from the year-end level.
Adjustments to First-Quarter GAAP Results
During the first quarter of 2013, the following items had a significant impact on the financial results:
First-Quarter 2013 Regional Highlights (compared with first-quarter 2012) |
|||||||||
Latin America |
|||||||||
$ in millions |
First-Quarter 2013 |
||||||||
% var. vs |
|||||||||
Total revenue |
$1,144.4 |
-% |
|||||||
C$ |
7% |
||||||||
Active Representatives |
4% |
||||||||
Units sold |
(2)% |
||||||||
Operating profit |
101.4 |
100% |
|||||||
Adjusted operating profit |
112.8 |
103% |
|||||||
Operating margin |
8.9% |
450 bps |
|||||||
Adjusted operating margin |
9.9% |
510 bps |
|||||||
Europe, Middle East & Africa |
||||||||||||||
$ in millions |
First-Quarter 2013 |
|||||||||||||
% var. vs |
||||||||||||||
Total revenue |
$733.1 |
1% |
||||||||||||
C$ |
3% |
|||||||||||||
Active Representatives |
4% |
|||||||||||||
Units sold |
4% |
|||||||||||||
Operating profit |
111.4 |
97% |
||||||||||||
Adjusted operating profit |
120.7 |
98% |
||||||||||||
Operating margin |
15.2% |
740 bps |
||||||||||||
Adjusted operating margin |
16.5% |
810 bps |
||||||||||||
North America |
||||||||||||||
$ in millions |
First-Quarter 2013 |
|||||||||||||
% var. vs |
||||||||||||||
Total revenue |
$406.2 |
(15)% |
||||||||||||
C$ |
(15)% |
|||||||||||||
Active Representatives |
(13)% |
|||||||||||||
Units sold |
(13)% |
|||||||||||||
Operating loss |
(11.2) |
* |
||||||||||||
Adjusted operating loss |
(5.4) |
* |
||||||||||||
Operating margin |
(2.8)% |
(360) bps |
||||||||||||
Adjusted operating margin |
(1.3)% |
(300) bps |
||||||||||||
* Calculation not meaningful |
Asia Pacific |
||||||||||||||
$ in millions |
First-Quarter 2013 | |||||||||||||
% var. vs 1Q12 | ||||||||||||||
Total revenue |
$200.0 |
(10)% | ||||||||||||
C$ |
(12)% | |||||||||||||
Active Representatives(2)* |
(4)% | |||||||||||||
Units sold |
(11)% | |||||||||||||
Operating profit |
11.1 |
(28)% | ||||||||||||
Adjusted operating profit |
15.9 |
(1)% | ||||||||||||
Operating margin |
5.6% |
(130) bps | ||||||||||||
Adjusted operating margin |
8.0% |
70 bps | ||||||||||||
* Excludes China |
Global Expenses |
|||||||||||||
$ in millions |
First-Quarter 2013 |
||||||||||||
% var. vs |
|||||||||||||
Total global expenses |
$140.7 |
(15)% |
|||||||||||
Allocated to segments |
(100.1) |
(9)% |
|||||||||||
Net global expenses |
40.6 |
(26)% |
|||||||||||
Adjusted net global expenses |
38.3 |
(9)% |
|||||||||||
Avon will conduct a conference call at 9:00 A.M. today to discuss the quarterly results. The dial-in number for the call is (800) 843-2086 in the U.S. or (706) 643-1815 from non-U.S. locations (conference ID number: 34621200). The call will be webcast live at www.avoninvestor.com and can be accessed or downloaded from that site for a period of one year. Please refer to the Form 10-Q for additional information on Avon's results for the quarter.
Avon, the company for women, is a leading global beauty company, with nearly $11 billion in annual revenue. As one of the world's largest direct sellers, Avon is sold through more than 6 million active independent Avon Sales Representatives. Avon products are available in over 100 countries, and the product line includes color cosmetics, skincare, fragrance, fashion and home products, featuring such well-recognized brand names as Avon Color, ANEW, Skin-So-Soft, Advance Techniques, and mark. Learn more about Avon and its products at www.avoncompany.com.
Footnotes
(1) "Adjusted" items refer to financial results presented in accordance with U.S. GAAP that have been adjusted to exclude certain costs as described below, under "Non-GAAP Financial Measures."
(2) In the first quarter of 2013, we renamed our "Growth in Active Representatives" performance metric to be referred to as "Change in Active Representatives." In addition, we revised the definition of this metric to exclude China. As previously disclosed, our business in China is predominantly retail, and as a result, we do not believe including China within the Change in Active Representatives calculation provides for a relevant indicator of underlying business trends. There were no changes to the underlying calculation other than the exclusion of China.
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we disclose operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, including changes in: revenue, operating profit, Adjusted operating profit, operating margin, and Adjusted operating margin. We refer to these adjusted financial measures as Constant $ or constant-dollar items, which are Non-GAAP financial measures. We believe these measures provide investors an additional perspective on trends. To exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, we calculate current year results and prior year results at a constant exchange rate. Currency impact is determined as the difference between actual growth rates and constant currency growth rates.
We also present gross margin, selling, general and administrative expenses as a percentage of revenue, net global expenses, operating profit, operating margin, net income and loss, and effective tax rate on a Non-GAAP basis. The discussion of our segments presents operating profit and operating margin on a Non-GAAP basis. We have provided a quantitative reconciliation of the difference between the Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. The Company uses the Non-GAAP financial measures to evaluate its operating performance and believes that it is meaningful for investors to be made aware of, on a period-to-period basis, the impacts of 1) CTI restructuring initiatives, 2) costs and charges related to Venezuela being designated as a highly inflationary economy and the subsequent devaluation of its currency in February 2013 ("Venezuelan special items") and 3) costs and charges related to the extinguishment of debt ("Loss on extinguishment of debt"). The Company believes investors find the Non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative impact on the Company's financial results in any particular period.
The Venezuelan special items include the impact on the Statement of Income caused by the devaluation of the Venezuelan currency on monetary assets and liabilities, such as cash, receivables and payables; deferred tax assets and liabilities; and non-monetary assets, such as inventory and prepaid expenses. For non-monetary assets, the Venezuelan special items include the earnings impact caused by the difference between the historical cost of the assets at the previous official exchange rate of 4.30 and the revised official exchange rate of 6.30. The Loss on extinguishment of debt includes the impact on the Statement of Income caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes, as well as the write-off of debt issuance costs associated with the early repayment of $380 million of the outstanding principal amount of the term loan agreement.
These Non-GAAP measures should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Statements in this release that are not historical facts or information may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "estimate," "forecast," "plan," "believe," "may," "expect," "anticipate," "intend," "potential," "can," "could," "will," "would," and similar expressions, or the negative of those expressions, may identify forward-looking statements. They include, among other things, statements regarding our anticipated or expected results, future financial performance, various strategies and initiatives (including our stabilization strategies, cost savings initiative, multi-year restructuring programs and other initiatives and related actions), liquidity, cash flow and uses of cash, our ability to service our debt obligations or obtain additional financing, costs and cost savings, competitive advantages, impairments, the impact of currency devaluations and other laws and regulations, government investigations, internal investigations and compliance reviews, results of litigation, contingencies, taxes and tax rates, potential acquisitions or divestitures, hedging and risk management strategies, pension, postretirement and incentive compensation plans, supply chain and the legal status of our Representatives. Such forward-looking statements are based on management's reasonable current assumptions, expectations, plans and forecasts regarding the Company's current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of Avon to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management's expectations. Such factors include, among others, the following:
Additional information identifying such factors is contained in Item 1A of our 2012 Form 10-K, as amended. We undertake no obligation to update any such forward-looking statements.
AVON PRODUCTS, INC. | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||
Three Months Ended |
Percent |
|||||||||||||||||
March 31 |
Change |
|||||||||||||||||
2013 |
2012 |
|||||||||||||||||
Net sales |
$ |
2,432.0 |
$ |
2,532.8 |
(4)% |
|||||||||||||
Other revenue |
51.7 |
42.6 |
||||||||||||||||
Total revenue |
2,483.7 |
2,575.4 |
(4)% |
|||||||||||||||
Cost of sales |
941.6 |
1,009.8 |
||||||||||||||||
Selling, general and administrative expenses |
1,370.0 |
1,494.1 |
||||||||||||||||
Operating profit |
172.1 |
71.5 |
141% |
|||||||||||||||
Interest expense |
29.4 |
24.6 |
||||||||||||||||
Loss on extinguishment of debt |
73.0 |
- |
||||||||||||||||
Interest income |
(2.0) |
(3.9) |
||||||||||||||||
Other expense, net |
44.4 |
10.0 |
||||||||||||||||
Total other expenses |
144.8 |
30.7 |
||||||||||||||||
Income before taxes |
27.3 |
40.8 |
(33)% |
|||||||||||||||
Income taxes |
(39.9) |
(13.2) |
||||||||||||||||
Net (loss) income |
(12.6) |
27.6 |
||||||||||||||||
Net income attributable to noncontrolling interests |
(1.1) |
(1.1) |
||||||||||||||||
Net (loss) income attributable to Avon |
$ |
(13.7) |
$ |
26.5 |
(152)% |
|||||||||||||
(Loss) Earnings per share:(1) |
||||||||||||||||||
Basic EPS |
$ |
(0.03) |
$ |
0.06 |
(150)% |
|||||||||||||
Diluted EPS |
$ |
(0.03) |
$ |
0.06 |
(150)% |
|||||||||||||
Weighted-average shares outstanding: |
||||||||||||||||||
Basic |
432.5 |
431.3 |
||||||||||||||||
Diluted |
432.5 |
432.1 |
||||||||||||||||
(1) |
Under the two-class method, (loss) earnings per share is calculated using net (loss) earnings allocable to common shares, which is derived by reducing net (loss) earnings by the (loss) earnings allocable to participating securities. Net (loss) earnings allocable to common shares used in the basic and diluted (loss) earnings per share calculation were ($13.6) and 25.7 for the three months ended March 31, 2013 and 2012, respectively. |
AVON PRODUCTS, INC. | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
(In millions) | |||||||||
March 31 |
December 31 | ||||||||
2013 |
2012 | ||||||||
Assets |
|||||||||
Current Assets |
|||||||||
Cash and cash equivalents |
$ |
1,488.4 |
$ |
1,209.6 | |||||
Accounts receivable, net |
742.9 |
751.9 | |||||||
Inventories |
1,214.2 |
1,135.4 | |||||||
Prepaid expenses and other |
787.1 |
832.0 | |||||||
Total current assets |
4,232.6 |
3,928.9 | |||||||
Property, plant and equipment, at cost |
2,618.0 |
2,711.8 | |||||||
Less accumulated depreciation |
(1,116.9) |
(1,161.6) | |||||||
Property, plant and equipment, net |
1,501.1 |
1,550.2 | |||||||
Goodwill |
361.2 |
374.9 | |||||||
Other intangible assets, net |
115.8 |
120.3 | |||||||
Other assets |
1,363.0 |
1,408.2 | |||||||
Total assets |
$ |
7,573.7 |
$ |
7,382.5 | |||||
Liabilities and Shareholders' Equity |
|||||||||
Current Liabilities |
|||||||||
Debt maturing within one year |
$ |
949.4 |
$ |
572.0 | |||||
Accounts payable |
890.3 |
920.0 | |||||||
Accrued compensation |
222.3 |
266.6 | |||||||
Other accrued liabilities |
585.7 |
661.0 | |||||||
Sales and taxes other than income |
215.9 |
211.4 | |||||||
Income taxes |
43.8 |
73.6 | |||||||
Total current liabilities |
2,907.4 |
2,704.6 | |||||||
Long-term debt |
2,685.5 |
2,623.9 | |||||||
Employee benefit plans |
616.0 |
637.6 | |||||||
Long-term income taxes |
51.9 |
52.0 | |||||||
Other liabilities |
117.9 |
131.1 | |||||||
Total liabilities |
$ |
6,378.7 |
$ |
6,149.2 | |||||
Shareholders' Equity |
|||||||||
Common stock |
$ |
189.3 |
$ |
188.3 | |||||
Additional paid-in-capital |
2,138.3 |
2,119.6 | |||||||
Retained earnings |
4,318.1 |
4,357.8 | |||||||
Accumulated other comprehensive loss |
(889.2) |
(876.7) | |||||||
Treasury stock, at cost |
(4,578.6) |
(4,571.9) | |||||||
Total Avon shareholders' equity |
1,177.9 |
1,217.1 | |||||||
Noncontrolling interests |
17.1 |
16.2 | |||||||
Total shareholders' equity |
$ |
1,195.0 |
$ |
1,233.3 | |||||
Total liabilities and shareholders' equity |
$ |
7,573.7 |
$ |
7,382.5 | |||||
AVON PRODUCTS, INC. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(Unaudited) | |||||||||||
(In millions) | |||||||||||
Three Months Ended | |||||||||||
March 31 | |||||||||||
2013 |
2012 | ||||||||||
Cash Flows from Operating Activities |
|||||||||||
Net (loss) income |
$ |
(12.6) |
$ |
27.6 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|||||||||||
Depreciation and amortization |
57.0 |
60.5 | |||||||||
Provision for doubtful accounts |
52.0 |
74.0 | |||||||||
Provision for obsolescence |
29.6 |
28.3 | |||||||||
Share-based compensation |
11.8 |
10.7 | |||||||||
Deferred income taxes |
(2.8) |
(26.2) | |||||||||
Charge for Venezuelan monetary assets and liabilities |
34.1 |
- | |||||||||
Other |
21.6 |
13.4 | |||||||||
Changes in assets and liabilities: |
|||||||||||
Accounts receivable |
(62.9) |
(44.0) | |||||||||
Inventories |
(111.3) |
(80.1) | |||||||||
Prepaid expenses and other |
(0.5) |
37.2 | |||||||||
Accounts payable and accrued liabilities |
(98.8) |
(60.7) | |||||||||
Income and other taxes |
(15.3) |
(46.6) | |||||||||
Noncurrent assets and liabilities |
(20.8) |
(27.1) | |||||||||
Net cash used by operating activities |
(118.9) |
(33.0) | |||||||||
Cash Flows from Investing Activities |
|||||||||||
Capital expenditures |
(43.5) |
(45.7) | |||||||||
Disposal of assets |
9.3 |
4.5 | |||||||||
Purchases of investments |
(4.2) |
(0.1) | |||||||||
Proceeds from sale of investments |
2.5 |
- | |||||||||
Net cash used by investing activities |
(35.9) |
(41.3) | |||||||||
Cash Flows from Financing Activities |
|||||||||||
Cash dividends |
(26.2) |
(100.0) | |||||||||
Debt, net (maturities of three months or less) |
118.7 |
50.2 | |||||||||
Proceeds from debt |
1,485.3 |
66.4 | |||||||||
Repayment of debt |
(1,173.3) |
(41.1) | |||||||||
Interest rate swap termination |
88.1 |
43.6 | |||||||||
Proceeds from exercise of stock options |
9.5 |
4.2 | |||||||||
Excess tax benefit realized from share-based compensation |
(0.1) |
(2.2) | |||||||||
Repurchase of common stock |
(6.8) |
(7.4) | |||||||||
Net cash provided by financing activities |
495.2 |
13.7 | |||||||||
Effect of exchange rate changes on cash and equivalents |
(61.6) |
30.7 | |||||||||
Net increase (decrease) in cash and equivalents |
278.8 |
(29.9) | |||||||||
Cash and equivalents at beginning of year |
$ |
1,209.6 |
$ |
1,245.1 | |||||||
Cash and equivalents at end of period |
$ |
1,488.4 |
$ |
1,215.2 | |||||||
AVON PRODUCTS, INC. |
||||||||||||||||||
SUPPLEMENTAL SCHEDULE |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
(In millions) |
||||||||||||||||||
THREE MONTHS ENDED 3/31/13 |
||||||||||||||||||
REGIONAL RESULTS |
||||||||||||||||||
$ in Millions |
Total Revenue US$ |
C$ |
Units Sold |
Price/Mix C$ |
Active Reps (1) |
Average Order C$ |
||||||||||||
% var. vs 1Q12 |
% var. vs 1Q12 |
% var. vs 1Q12 |
% var. vs 1Q12 |
% var. vs 1Q12 |
% var. vs 1Q12 |
|||||||||||||
Latin America |
$ |
1,144.4 |
-% |
7% |
(2)% |
9% |
4% |
3% |
||||||||||
Europe, Middle East & Africa |
733.1 |
1 |
3 |
4 |
(1) |
4 |
(1) |
|||||||||||
North America |
406.2 |
(15) |
(15) |
(13) |
(2) |
(13) |
(2) |
|||||||||||
Asia Pacific (1) |
200.0 |
(10) |
(12) |
(11) |
(1) |
(4) |
(8) |
|||||||||||
Total from operations |
2,483.7 |
(4) |
- |
(3) |
3 |
1 |
(1) |
|||||||||||
Global and other |
- |
- |
- |
- |
- |
- |
- |
|||||||||||
Total |
$ |
2,483.7 |
(4)% |
-% |
(3)% |
3% |
1% |
(1)% |
||||||||||
2013 GAAP US$ |
% var. vs 1Q12 |
2013 |
2013 |
2012 |
2013 Adjusted |
2012 |
||||||||||||
Latin America |
$ |
101.4 |
100% |
8.9% |
$ |
112.8 |
$ |
55.5 |
9.9% |
4.8% |
||||||||
Europe, Middle East & Africa |
111.4 |
97 |
15.2 |
120.7 |
61.1 |
16.5 |
8.4 |
|||||||||||
North America |
(11.2) |
* |
(2.8) |
(5.4) |
8.2 |
(1.3) |
1.7 |
|||||||||||
Asia Pacific |
11.1 |
(28) |
5.6 |
15.9 |
16.1 |
8.0 |
7.3 |
|||||||||||
Total from operations |
212.7 |
68 |
8.6 |
244.0 |
140.9 |
9.8 |
5.5 |
|||||||||||
Global and other |
(40.6) |
26 |
- |
(38.3) |
(42.1) |
- |
- |
|||||||||||
Total |
$ |
172.1 |
141% |
6.9% |
$ |
205.7 |
$ |
98.8 |
8.3% |
3.8% |
||||||||
CATEGORY SALES (US$) |
||||||||||||||||||
Consolidated |
||||||||||||||||||
US$ |
C$ |
|||||||||||||||||
% var. vs 1Q12 |
% var. vs 1Q12 |
|||||||||||||||||
Beauty (color cosmetics/fragrances/skincare/personal care) |
$ |
1,768.2 |
(5)% |
(1)% |
||||||||||||||
Fashion (jewelry/watches/apparel/footwear/accessories/children's) |
429.8 |
(4) |
(3) |
|||||||||||||||
Home (gift & decorative products/housewares/entertainment & leisure/children's/nutrition) |
234.0 |
4 |
8 |
|||||||||||||||
Net sales |
$ |
2,432.0 |
(4)% |
-% |
||||||||||||||
Other revenue |
51.7 |
21 |
20 |
|||||||||||||||
Total revenue |
$ |
2,483.7 |
(4)% |
-% |
||||||||||||||
Beauty Category: |
||||||||||||||||||
Fragrance |
1% |
6% |
||||||||||||||||
Color |
(6) |
(2) |
||||||||||||||||
Skincare |
(12) |
(9) |
||||||||||||||||
Personal care |
(3) |
- |
||||||||||||||||
* Calculation not meaningful | |
(1) |
In the first quarter of 2013, we revised the definition of Active Representatives to exclude China. As previously disclosed, our business in China is predominantly retail, and as a result, we do not believe including China within the Change in Active Representatives calculation provides for a relevant indicator of underlying business trends. There were no changes to the underlying calculation other than the exclusion of China. |
(2) |
For a further discussion on our Non-GAAP ("Adjusted") financial measures, please refer to our discussion of Non-GAAP financial measures in this release and reconciliations of our Non-GAAP financial measures to the related GAAP financial measure in the following supplemental schedules. |
AVON PRODUCTS, INC. |
|||||||||||||||||
SUPPLEMENTAL SCHEDULE |
|||||||||||||||||
NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the difference between the |
|||||||||||||||||
Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. |
|||||||||||||||||
$ in Millions (except per share data) |
THREE MONTHS ENDED 3/31/13 |
||||||||||||||||
CTI |
Loss on |
||||||||||||||||
Reported |
restructuring |
Venezuelan |
extinguishment |
Adjusted |
|||||||||||||
(GAAP) |
initiatives |
special items |
of debt |
(Non-GAAP) |
|||||||||||||
Cost of sales |
$ |
941.6 |
$ |
(0.6) |
$ |
9.9 |
$ |
- |
$ |
932.3 |
|||||||
Selling, general and administrative expenses |
1,370.0 |
20.9 |
3.3 |
- |
1,345.8 |
||||||||||||
Operating profit |
172.1 |
20.3 |
13.3 |
- |
205.7 |
||||||||||||
Income before taxes |
27.3 |
20.3 |
47.3 |
73.0 |
167.9 |
||||||||||||
Income taxes |
(39.9) |
(6.4) |
16.6 |
(26.8) |
(56.5) |
||||||||||||
Net (loss) income |
$ |
(12.6) |
$ |
13.9 |
$ |
64.0 |
$ |
46.2 |
$ |
111.5 |
|||||||
Diluted EPS |
(0.03) |
0.03 |
0.15 |
0.11 |
0.26 |
||||||||||||
Gross margin |
62.1% |
- |
0.4 |
- |
62.5% |
||||||||||||
SG&A as a % of revenues |
55.2% |
(0.8) |
(0.1) |
- |
54.2% |
||||||||||||
Operating margin |
6.9% |
0.8 |
0.5 |
- |
8.3% |
||||||||||||
Effective tax rate |
146.1% |
(0.3) |
(115.0) |
2.7 |
33.6% |
||||||||||||
SEGMENT OPERATING PROFIT (LOSS) |
|||||||||||||||||
Latin America |
$ |
101.4 |
$ |
(1.8) |
$ |
13.3 |
$ |
112.8 |
|||||||||
Europe, Middle East & Africa |
111.4 |
9.2 |
- |
120.7 |
|||||||||||||
North America |
(11.2) |
5.8 |
- |
(5.4) |
|||||||||||||
Asia Pacific |
11.1 |
4.8 |
- |
15.9 |
|||||||||||||
Global and other |
(40.6) |
2.3 |
- |
(38.3) |
|||||||||||||
Total |
$ |
172.1 |
$ |
20.3 |
$ |
13.3 |
$ |
205.7 |
|||||||||
SEGMENT OPERATING MARGIN |
|||||||||||||||||
Latin America |
8.9% |
(0.2) |
1.2 |
9.9% |
|||||||||||||
Europe, Middle East & Africa |
15.2% |
1.3 |
- |
16.5% |
|||||||||||||
North America |
(2.8)% |
1.4 |
- |
(1.3)% |
|||||||||||||
Asia Pacific |
5.6% |
2.4 |
- |
8.0% |
|||||||||||||
Global and other |
- |
- |
- |
- |
|||||||||||||
Total |
6.9% |
0.8 |
0.5 |
8.3% |
|||||||||||||
Amounts in the table above may not necessarily sum because the computations are made independently. |
|||||||||||||||||
AVON PRODUCTS, INC. |
|||||||||||||||||
SUPPLEMENTAL SCHEDULE |
|||||||||||||||||
NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative |
|||||||||||||||||
reconciliation of the difference between the Non-GAAP financial measure and the financial measure |
|||||||||||||||||
calculated and reported in accordance with GAAP. |
|||||||||||||||||
$ in Millions (except per share data) |
THREE MONTHS ENDED 3/31/12 |
||||||||||||||||
CTI |
|||||||||||||||||
Reported |
restructuring |
Adjusted |
|||||||||||||||
(GAAP) |
initiatives |
(Non-GAAP) |
|||||||||||||||
Cost of sales |
$ |
1,009.8 |
$ |
2.7 |
$ |
1,007.1 |
|||||||||||
Selling, general and administrative expenses |
1,494.1 |
24.6 |
1,469.5 |
||||||||||||||
Operating profit |
71.5 |
27.3 |
98.8 |
||||||||||||||
Income before taxes |
40.8 |
27.3 |
68.1 |
||||||||||||||
Income taxes |
(13.2) |
(9.2) |
(22.4) |
||||||||||||||
Net income |
$ |
27.6 |
$ |
18.1 |
$ |
45.7 |
|||||||||||
Diluted EPS |
0.06 |
0.04 |
0.10 |
||||||||||||||
Gross margin |
60.8% |
0.1 |
60.9% |
||||||||||||||
SG&A as a % of revenues |
58.0% |
(1.0) |
57.1% |
||||||||||||||
Operating margin |
2.8% |
1.1 |
3.8% |
||||||||||||||
Effective tax rate |
32.3% |
0.6 |
32.9% |
||||||||||||||
SEGMENT OPERATING PROFIT |
|||||||||||||||||
Latin America |
$ |
50.8 |
$ |
4.7 |
$ |
55.5 |
|||||||||||
Europe, Middle East & Africa |
56.5 |
4.6 |
61.1 |
||||||||||||||
North America |
3.8 |
4.4 |
8.2 |
||||||||||||||
Asia Pacific |
15.4 |
0.7 |
16.1 |
||||||||||||||
Global and other |
(55.0) |
12.9 |
(42.1) |
||||||||||||||
Total |
$ |
71.5 |
$ |
27.3 |
$ |
98.8 |
|||||||||||
SEGMENT OPERATING MARGIN |
|||||||||||||||||
Latin America |
4.4% |
0.4 |
4.8% |
||||||||||||||
Europe, Middle East & Africa |
7.8% |
0.6 |
8.4% |
||||||||||||||
North America |
0.8% |
0.9 |
1.7% |
||||||||||||||
Asia Pacific |
6.9% |
0.3 |
7.3% |
||||||||||||||
Global and other |
- |
- |
- |
||||||||||||||
Total |
2.8% |
1.1 |
3.8% |
||||||||||||||
Amounts in the table above may not necessarily sum because the computations are made independently. |
SOURCE Avon Products, Inc.
Copyright 2013 PR Newswire
1 Year Avon Products Chart |
1 Month Avon Products Chart |
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