Molson Coors Brewing Q4 Adj. EPS Miss Estimates, But Revenues Top;hikes Dividend

(RTTNews) - Molson Coors Brewing Co. (TAP, TPX.TO) said that its fourth-quarter net income attributable to the company significantly increased to $131.5 million from the prior year's $60.0 million, with net income per share improving to $0.71 from $0.33 last year.

The company reported 0.2 percent lower underlying after-tax income for the fourth quarter 2013, due to a higher underlying effective tax rate.

Underlying after-tax income was $125.8 million, down from $126.1 million last year. Underlying income per share decreased to $0.68 from $0.69 in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

Underlying fourth quarter pretax income increased 6.5 percent, driven by improved performance in the U.S. and Europe, along with less underlying interest expense versus a year ago.

U.S. GAAP net income from continuing operations attributable to the company for the fourth quarter increased 118.3 percent due to lower U.S. GAAP income tax expense and higher non-core gains, along with improved financial results in the U.S. and Europe.

The special and other non-core items have been excluded from underlying pretax earnings.

During the quarter, Molson Coors special items resulted in a $34.2 million pretax charge, primarily driven by a $13.2 million loss resulting from the termination of our Tradeteam distribution agreements and subsequent sale of our 49.9% interest in Tradeteam to DHL, as well as a $17.9 million impairment charge related to the definite-lived intangible brand assets in Canada associated with the Miller licensing agreement.

Additionally, the company recognized a $13.6 million charge for employee-related restructuring expenses and special termination benefits for some of our defined-benefit pension plans. These charges were partially offset by a gain of $5.9 million recognized upon finalizing the sale of our interest in its MC Si'hai joint venture in China, as well as a $4.6 million net gain recognized for insurance payments received related to the floods in Europe that occurred in the second quarter of 2013.

Quarterly net sales were $1.028 billion compared to $1.030 billion in the year ago quarter. Seven analysts estimated revenues of $1.01 billion for the quarter.

Molson Coors Brewing declared an increased regular quarterly dividend of $0.37 per share, payable March 17, 2014, to Class A and Class B shareholders of record on February 28, 2014. This dividend represents a 16 percent increase from the previous quarterly rate of $0.32 per share and raises the annual dividend rate to $1.48 per share.

In addition, Molson Coors Canada Inc. (TPX_B.TO, TPX_A.TO), declared a quarterly dividend of the Canadian dollar equivalent of US$0.37 per share using today's noon spot exchange rate as reported by the Bank of Canada, payable March 17, 2014, to Class A exchangeable and Class B exchangeable shareholders of record on February 28, 2014.