Molson Coors Brewing Company (NYSE:TAP) Q4 2016 Earnings Conference Call - Final Transcript

Feb 14, 2017 • 11:00 am ET


Molson Coors Brewing Company (NYSE:TAP) Q4 2016 Earnings Conference Call - Final Transcript


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Welcome to the Molson Coors Brewing Company Fourth Quarter 2016 Earnings Conference Call. [Operator Instructions]

Before we begin, I will paraphrase the Company's Safe Harbor language. Some of the discussion today may include forward-looking statements. Actual results could differ materially from what the Company projects today, so please refer to its most recent 10-K and 10-Q filings for a more complete description of factors that could affect these projections. The Company does not undertake to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements which speak only as of the date they are made.

Regarding any non-US GAAP measures that may be discussed during the call and from time to time by the Company's executives in discussing the Company's performance, please visit the Company's website at and click on the financial reporting tab of the investor relations page for a reconciliation of these measures to the nearest US GAAP results. Also, unless otherwise indicated, all financial results the Company discusses are versus the comparable prior-year prior [Phonetic] and in US dollars.

Now, I would like to turn the call over to Mark Hunter, President and CEO of Molson Coors.

Mark Hunter

Thank you, Andrea, and hello, and welcome, everybody, to the Molson Coors earnings call, and many thanks for joining us today. With me on the call this morning from Molson Coors, we have Tracey Joubert, our Global CFO; Gavin Hattersley, CEO of our US Business; Fred Landtmeters, our Canada CEO; Simon Cox, the CEO of our Europe Business; Stewart Glendinning, our International CEO; Sam Walker, our Global Chief Legal and Corporate Affairs Officer; and Brian Tabolt, our Global Controller. And last but not least, Dave Dunnewald, our VP of Investor Relations.

On the call today, Tracey, and I will take you through the highlights of our full-year and fourth quarter 2016 results from the Molson Coors Brewing Company, along with some perspectives on 2017. Now, clearly, the biggest news for 2016 was completing our acquisition of the remaining 58% of MillerCoors and the Miller global brand portfolio for $12 billion, representing the largest transaction in our Company's history, which made Molson Coors the third largest global brewer.

We also retain the rights to all of the brands that were in the MillerCoors portfolio in the US and Puerto Rico, including Redd's and import brands such as Peroni, Grolsch, and Pilsner Urquell. The transaction was completed at 9.2 times effective purchase multiple, including the present value of cash tax benefits. Additionally, we will be driving substantial cost synergies in the next three years and we continue to expect this transaction to be significantly accretive to underlying earnings in the first full-year of operations.

With the completion of the transaction and the changes we're making to align and enhance our organization, the building blocks are in place for our Company to drive top-line growth, profit, cash generation, debt pay-down and total shareholder returns in the years ahead. Led