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Green Mountain Coffee Roasters reports third quarter 2012 results, repurchase of $500 million in shares

first_img(28,914) 0.05 $0.46 $(7.4) June 25, 2011 – Acquisition-related expenses (1) $144,199 23,827 $717.2 $129.7 $271,465 * Does not sum due to rounding. 25,885 95%Finished goods 9%Net Income: Net income per common share – basic ($ in millions) – (535) 21% Selling and operating expenses $44,174 (27)%Total Net Sales – Gross profit $149.1 $1.75 Thirty-nine 29,175 Loss on extinguishment of debt (3) % Increase 399,841 Total current liabilities $3,337,130 $417.5 Thirteen weeks ended Loss on extinguishment of debt (3) 291,096 $409.1 $ Increase % Increase 19,514 149,357,480 $90.0 Gain on foreign currency, net Thirty-nine weeks ended June 25, 2011 Excess tax benefits from equity-based compensation plans 119,310 $313.5 Deferred income taxes, net 9%Non-GAAP Assets 215,153 1,959,509 (34.3) Receivables GAAP 3,032 Other current liabilities 0.05 471,875 $0.83 (233)Loss on financial instruments, net (1) 0.00 $2,912,462 1,534,166 -110 bpsLower warranty expense Stockholders’ equity: – 60 bpsGAAP operating margin of 14.9% of net sales in the third quarter of fiscal year 2012 decreased from 16.6% in the prior year period as a result of the lower gross margin.Non-GAAP operating margin, which excludes $3.0 million in expenses associated with the SEC inquiry and pending litigation in the quarter, as well as$11.5 million in amortization of identifiable intangibles related to the Company’s acquisitions, was 16.6% of net sales in the third quarter of fiscal year 2012 compared to 18.4% in the prior year period.The Company’s effective income tax rate was 39.6% for the third quarter of fiscal year 2012 as compared to a 35.8% effective tax rate for the prior year period. The increase is attributable to the extension of the 2011 Federal R&D credit in the third quarter of the prior year and lower stock option activity in the current quarter.Diluted weighted average shares outstanding as of the end of the third quarter of fiscal year 2012 increased to 159.3 million from 153.3 million from the prior year period.Balance Sheet & Cash Flow Highlights”We are pleased with the strength of our balance sheet including our low debt ratio,” said Frances G. Rathke, GMCR’s Chief Financial Officer. “As part of our ongoing efforts to drive efficiencies in our single-serve pack inventory management and distribution, we have reduced our forward-weeks coverage on hand from our fiscal second quarter.””Our higher overall inventory dollar balance in the third quarter of fiscal 2012 compared to the same period in fiscal 2011 is largely driven by increases in Keurig® brewer finished goods resulting from expected first quarter fiscal 2013 holiday demand,” continued Rathke. “In order to ensure brewer availability on retail shelves for the holiday season, all of our anticipated holiday brewer units must be on hand in North America by early October, leading to brewer and accessories inventory build beginning in our fiscal third quarter and continuing into our fiscal fourth quarter.” – June 23, 0.10 June 25, (12,449) 9%Diluted Income Per Share: 482 June 25, $129,728 Non-GAAP net income 25%Non-GAAP Income tax payable $174.2 579,219 $152.0 – 34,496 – $667.0 Financing costs in connection with public equity offering $123.4 60%Raw materials & supplies – 33.7 $126.1 $9,271 $153.0 Amortization of identifiable intangibles (3) $125,227 Expenses related to SEC inquiry (1) 496,793 $46.1 Unrealized gain of foreign currency $1.70 $424.0 Basic income per share: 0.15 $(12.8) 27,184 (907,835)Proceeds from sale of subsidiary, net of cash transferred $127.3 Cash flows from investing activities: $56,970 (13,728) (461) Net income per common share – diluted $301.5 8,392 112 796,375 Adjustments to reconcile net income to net cash provided by operating activities: 2012 $3,337,130 $1,939,016 (827) Additional paid-in capital $485.4 Diluted income per share 16%Inventories 26,311 $717,210 Accumulated other comprehensive income (loss) (45,821)Repayment of long-term debt 43,646 2,214,882 (31,778)Net Income weeks ended Thirteen weeks ended June 23, 2012 June 23, Current liabilities: $3.5 2011 25,533 Change in restricted cash 2012 Thirty-nine weeks ended June 23, 2012 13,198 453,130 92.1 $95.6 Thirteen (29,175)Deferred income taxes $0.38 % Increase (Decrease)Net Sales (6,231) 28,603 (7)Proceeds from borrowings of long-term debt 89,221 Accrued compensation costs +60 bpsOther 0.07 47,759 Expenses related to SEC inquiry (1) Gain on sale of subsidiary, excluding transaction costs N/A(*)Free cash flow is calculated by subtracting capital expenditures for fixed assets from net cash provided by operating activities as reported in the unaudited statement of cash flows. Non-GAAP operating income 37,913 (4,255) (4,956)Loss on disposal of fixed assets Thirteen weeks ended June 25, 2011 121,764 153,344,389 (608) weeks ended 19,341 5,593 Amortization of identifiable intangibles (2) 1,288,481 (14,575)Total stockholders’ equity Gross profit 650,535 Net income attributable to noncontrolling interests 29,587 $6,669 Basic weighted average shares outstanding $0.37 (59,130) 23,658 Thirty-nine weeks ended June 23, 2012 (208,678) Diluted income per share: $70.8 224 $0.52 71,737 $36.5 (981)Interest expense weeks ended $869,194 986,183 weeks ended $243.0 229 $75,747 Non-GAAP net income Thirteen weeks ended  June 25, 2011 (Decrease)Cash and cash equivalents 1,759 1,499,616 (78,171)Net Income Proceeds from notes receivable $119,310 Net change in revolving line of credit Total liabilities and stockholders’ equity Net Sales by Product Deferred financing fees 370,445 Amortization deferred financing fees 27,523 Other current liabilities Deferred income taxes, net Operating income Loss on extinguishment of debt (4) (6,157) Redeemable noncontrolling interests $300.6 $0.86 GAAP Approximately 89% of consolidated third quarter fiscal year 2012 net sales were from sales of Keurig® Single Cup Brewers, single-serve packs, andKeurig®-related accessories, with the remainder of net sales consisting primarily of sales of bagged coffee and sales from the office coffee services business.The increase in single-serve pack sales was driven by a 28 percentage point increase in sales volume and a 3 percentage point increase in K-Cup® pack net price realization due primarily to price increases implemented during fiscal 2011 to offset higher green coffee and other input costs.GMCR sold 1.4 million Keurig® Single Cup Brewers during the third quarter of fiscal year 2012. This brewer shipment number does not account for consumer returns.The Company estimates that the combination of brewer shipments from GMCR and its licensed partners resulted in shipments of 1.5 million Keurig® Single Cup Brewers in the third quarter of fiscal year 2012.The third fiscal quarter’s net sales included $20.0 million of sales of new Vue® brewers and Vue® packs. According to data from The NPD Group, Vue® brewer sales were more than two times that of other coffee and espresso makers in its price category in the quarter ending June 2012.Other products and royalties declined year-over-year primarily as a result of the sale of the Filterfresh on October 3, 2011.Operating MetricsIn the third quarter of fiscal 2012, gross margin declined to 34.9% from 36.8% in the prior year period.The decline compared to the prior year period was due in part to under-utilization of the Company’s manufacturing base as a result of lower than expected manufacturing through-put primarily due to lower K-Cup® pack demand and lower-than-planned production levels. An increase in single-serve pack obsolescence also adversely impacted gross margin in the quarter.These adverse impacts were partially offset by the single-serve pack net price realization from price increases taken in fiscal 2011 to offset higher green coffee and other input costs experienced in fiscal 2011 and the first half of fiscal 2012, as well as by a decrease in green coffee costs in the third quarter of fiscal 2012 compared to the prior year period.The following table quantifies the changes in gross margin period to period: Thirteen weeks ended June 23, 2012 Cost of sales Other income (expense), net Represents direct acquisition-related expenses of $10.6 million ($9.8 million after-tax); the write-off of deferred financing expenses as part of new debt financing of$2.6 million ($1.6 million after-tax); and the foreign exchange impact of hedging the risk associated with the Canadian dollar purchase price of the Van Houtte acquisition of $5.3 million ($4.0 million after-tax). In addition, the Company recognized a $2.1 million tax expense related to the reversal of nondeductible acquisition-related expenses incurred during the Company’s fourth quarter of fiscal 2010 and a $3.0 million tax benefit related to the reversal of certain nondeductible acquisition-related expenses incurred during the Company’s fourth quarter of fiscal 2010 and the first quarter of fiscal 2011 that were deemed deductible in accordance with tax regulations enacted in the second quarter of fiscal 2011. This combined tax affect was reversed for purposes of this non-GAAP table.(2) (18,662) 11,027 2,315 Cash distributions to redeemable noncontrolling interests shareholders Loss on extinguishment of debt (118,113)Income tax receivable/payable, net Acquisition-related expenses (1) Interest expense (11,552)Accounts payable (16,685) 10,096 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Operations(Dollars in thousands except per share data) 126.4 38 116%Packaging & other raw materials Net sales Thirty-nine (3)%Thirty-nine weeks cash provided by operating activities Loss on financial instruments, net Unrealized loss on financial instruments, net 155,071,117 Change in cash balances included in current assets held for sale (158)Net cash used in investing activities 139.1 Expenses related to SEC inquiry (2) Diluted income per share: Diluted weighted average shares outstanding (11,819)Gain on foreign currency, net $869.2 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Balance Sheets(Dollars in thousands) $1.70 Net sales (52,560)Income before income taxes -320 bpsNet price realization September 24, Represents the write-off of debt issuance costs and original issue discount, net of tax, primarily associated with the extinguishment of the Term B loan under the Credit Agreement. – – Non-GAAP operating income Cash and cash equivalents $0.83 11,794 Restricted cash and cash equivalents $125,227 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Operations(Dollars in thousands except per share data) June 25, 265,862 189,637 Inventories 667,005 262,201 Income taxes receivable Tax benefit from exercise of non-qualified options and disqualified dispositions of incentive stock options 4,401 Long-term assets held for sale 1,164 13,811 $717.2 789,305 (1,082,070) Income tax expense Acquisition of LJVH Holdings, Inc. (Van Houtte), net of cash acquired $12,989 $0.49 1,159,171 Represents the write-off of debt issuance costs and original issue discount, net of tax, primarily associated with the extinguishment of the Term B loan under the Credit Agreement.(5) – 846,323 (198,836) Thirty-nine weeks ended June 23, 2012 15,553 $270,741 Goodwill 21,034 2012 1,131,527 $183.5 – 253,546 117,982 474 Total assets Operating income General and administrative expenses 6,464 4,014 Net income per common share – diluted $174.7 2,996 $103.0 $0.49 Acquisition-related expenses (1) 933 (1) June 23, 12,449 108,085 Diluted weighted average shares outstanding $106.8 77,626 9,617 Deferred income taxes, net Operating income 243 Just after the stock market closed Wednesday, Green Mountain Coffee Roasters, Inc, (GMCR) (NASDAQ: GMCR) announced its third quarter fiscal year 2012 results for the thirteen and thirty-nine weeks ended June 23, 2012. It also announced that its board had authorized a $500 million share repurchase. Against the third quarter of 2011, Q3 2012 sales were $869.2 million, or 21 percent greater and net income per share was 46 cents, an increase of 25 percent from last year. The stock is near its 52-week low ($17.11/$115.98) as it finished the day at $17.91, down 35 cents or $1.92 percent. Shares were up by early Thursday to $22.74, a gain of $4.82 from Wednesday’s close (+26.93%). GMCR also announced that Norman H Wesley, former CEO and Chairman of Fortune Brands, Inc, has joined its Board of Directors. 28,072 34,613 Current liabilities related to assets held for sale June 23, 9,828 $0.37 $119.3 Thirty-nine weeks ended June 25, 2011 Amortization of identifiable intangibles (3) 11,027 $152.6 41%Brewers & accessories 212,101 425,159 Other long-term liabilities 55,601 120,583 $0.37 49,134 (29,830)Income before income taxes – Other income (expense), net 45,598 92,120 34,496 143,606,691 $173,639 2011 Common stock, $0.10 par value: Authorized – 500,000,000 shares; Issued and outstanding – 155,526,602 and 154,466,463 shares atJune 23, 2012 and September 24, 2011, respectively Provision for doubtful accounts 952,953 $73,520 -120 bpsFavorable green coffee costs $26.9 411,727 678,891 Long-term debt and capital lease obligations $138,988 2011 575,969 Other investing activities $464,466 (906,708)Net cash (used in) provided by financing activities June 23, 2012 $3,197,887 11,541 Total current assets $869.2 2011 Thirty-nine June 23, 6%EBITDA – LTM(*) 513 $421.9 Cash flows from operating activities: Net income *$1.16 Other long-term assets Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.(3) General and administrative expenses $265.9 50,176 Cash and cash equivalents at beginning of period Thirteen weeks ended June 25, 2011 – weeks ended 4,538 2,103 Change Q3 2011 to Q3 2012Manufacturing base under-utilization Non cash financing and investing activities: 3,343 $0.46 15,447 43,260 4 32%Other Products and Royalties $262,201 $75.7 – $280,603 – (167,680) After tax: 83,170 48,755 ($ in millions except earnings per share) $56.3 $309,554 9,577 Operating income Gain on sale of subsidiary June 23, $ Increase (214) 264,080 $3,197,887 799 $82.2 1,912,215 1,231 Changes in assets and liabilities, net of effects of acquisition: Thirteen weeks ended June 23, 2012 (58,229)Inventories 73%Single-serve packs Principal payments under capital lease obligations 4,643 Deferred compensation and stock compensation 129,728 (1,106)Accrued expenses (7)%Other $0.52 Current assets held for sale $270,741 2012 Expenses related to SEC inquiry (2) 203,398 Receivables, less uncollectible accounts and return allowances of $39,389 and $21,407 at June 23, 2012 and September 24, 2011, respectively Net income attributable to GMCR 2,889 12,054 $23.4 Represents the gain recognized on the sale of Filterfresh, net of income taxes of $9.6 million. (2,388)Other long-term liabilities Gain on sale of subsidiary (5) 14,524 Net cash provided by operating activities Cash flows from financing activities: Net income attributable to noncontrolling interests (702)Proceeds from issuance of common stock in public equity offering 125,999 (163,949) Diluted income per share +110 bpsVue®-related impact 240 449 $488.2 $182.7 672,248 137,733 (5,068) Proceeds from issuance of common stock under compensation plans 159,299,578 (175,474)Proceeds from disposal of fixed assets 340 Selling and operating expenses 7,810 – – 19,732 36,231 0.03 2011 Proceeds from issuance of common stock for private placement 21%Operating Income: 2012 Loss on extinguishment of debt (4) Accrued expenses weeks ended 2011 ($ in millions) “Our third quarter results demonstrate continued business strength and solid fundamentals, particularly in light of the robust comparable quarter we reported in the year ago period,” said Lawrence J Blanford, GMCR’s President and CEO. “Our Keurig® Single Cup Brewing system continues to revolutionize the way North Americans prepare and consume their single-serve beverages and our proven ability to grow consumer awareness and demand for the system has enabled us to deliver extraordinary results over the past five years.””As we become larger, however, our sales growth trajectory will understandably moderate from hyper-growth to a level more in-line with other successful growth businesses,” continued Blanford. “Based upon our current analysis of business fundamentals and the single-serve opportunity, we believe we will deliver annual sales growth in the range of 15% to 20% with annual earnings growth in the mid-teens over the longer term.”Board Authorized Share RepurchaseGMCR’s Board of Directors has authorized the Company to repurchase up to $500.0 million of its common shares over the next two years, at such times and prices as determined appropriate by the Company’s management in collaboration with the Board of Directors. The shares will be purchased with cash on hand, cash from operations, and funds available through our existing credit facility.”Based on expectations for future growth and the Company’s ability to generate meaningful free cash flow in 2013 and 2014, the Board of Directors has decided to strategically deploy its capital by authorizing the repurchase of common shares from time to time depending on market conditions,” said Michael J. Mardy, Interim Chairman of GMCR’s Board of Directors. Amortization of intangibles 529,494 $638.0 673,048 Capital expenditures for fixed assets $124,132 (25,685)Excess tax benefits from equity-based compensation plans 159,364,440 (0.10) (37,895) 0.07 565,883 91,032 (3,909) Fixed Assets acquired under capital lease obligations/vendor notes 15%Debt outstanding and capital lease obligations 791,197 2,371 Net income attributable to GMCR Other current assets Expenses related to SEC inquiry (1) 7,686 $714.9 (8,248) $390.8 $34,293 Liabilities and Stockholders’ Equity Net increase in cash and cash equivalents 134,788 $124,132 Amortization of identifiable intangibles (2) 12,989 23,812 Cash and cash equivalents at end of period $144.2 – Thirty-nine Business Outlook and Other Forward-Looking InformationCompany Estimates for Fourth Quarter and Fiscal Year 2012In its guidance for its fourth quarter (which contains 14 weeks), the Company refined estimates for its fiscal year 2012.For the fourth quarter of fiscal year 2012, the Company anticipates:Total net sales in the range of $889.9 million to $925.5 million, or net growth of 25% to 30%, from $711.9 million in the fourth quarter of fiscal year 2011.Fourth quarter 2012 non-GAAP earnings per diluted share in a range of $0.45 to $0.50 per diluted share, excluding any acquisition-related transaction expenses; legal and accounting expenses related to the SEC inquiry and the Company’s pending litigation; amortization of identifiable intangibles related to the Company’s acquisitions; and any impact from anticipated Company share repurchases.We anticipate the fiscal 2012 fourth quarter tax rate to be similar to the 37.7% year to date tax rate. Last year’s fourth quarter tax rate was 23.7% primarily attributable to the release of valuation allowances related to a $17.7 million capital loss carryforward and a $5.4 million net operating loss carryforward in the fourth quarter of fiscal 2011.For its fiscal year 2012, the Company anticipates:Total net sales in the range of $3.79 billion to $3.84 billion, or net growth of 43% to 45%, from $2.65 billion in fiscal year 2011.Fiscal year 2012 non-GAAP earnings per diluted share in a range of $2.21 to $2.26 per diluted share, excluding approximately $0.20 per share due to the amortization of identifiable intangibles related to the Company’s acquisitions; any acquisition-related transaction expenses; legal and accounting expenses related to the SEC inquiry and the Company’s pending litigation; any gain from the sale of the Filterfresh business; and any impact from anticipated Company share repurchases.Capital expenditures in the range of $475 to $525 million, down from prior estimates of $525 to $575 million.Slightly negative free cash flow for fiscal 2012.Company Outlook for Fiscal Year 2013The Company provided its outlook for its fiscal year 2013:Total net sales growth in the range of 15% to 20% over fiscal 2012.Fiscal year 2013 non-GAAP earnings per diluted share in a range of $2.55 to $2.65 per diluted share, excluding approximately $0.18 per share due to the amortization of identifiable intangibles related to the Company’s acquisitions; any acquisition-related transaction expenses; legal and accounting expenses related to the SEC inquiry and the Company’s pending litigation; and, any impact from anticipated Company share repurchases.Capital expenditures in the range of $380 million to $430 million.Free cash flow in the range of $100 million to $150 million.Use of Non-GAAP Financial MeasuresIn addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude certain charges or credits such as transaction expenses related to the Company’s acquisitions including the foreign exchange impact of hedging the risk associated with the Canadian dollar purchase price of the Van Houtte acquisition; any gain from sale of the Filterfresh U.S.-based coffee services business; legal and accounting expenses related to the SEC inquiry and pending litigation; and non-cash related items such as amortization of identifiable intangibles and losses incurred on the extinguishment of debt, each of which include adjustments to show the tax impact of excluding these items. These amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company’s results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the “GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations” tables that accompany this document for a full reconciliation the Company’s GAAP to non-GAAP results.Conference Call and WebcastGreen Mountain Coffee Roasters, Inc. will be discussing these financial results with analysts and investors in a conference call and live webcast available via the Internet at 5:00 p.m. ET today, August 1, 2012. Management’s prepared remarks on its quarterly results will be provided via a Current Report on Form 8-K and also posted under the events link in the Investor Relations section of the Company’s website at www.GMCR.com(link is external). As a result, the conference call will include only brief remarks by management followed by a question and answer session. The call along with accompanying slides is accessible via live webcast from the events link in the Investor Relations portion of the Company’s website at http://investor.gmcr.com/events.cfm(link is external). The Company archives the latest conference call for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, Passcode 5540931 from 9:00 p.m. ET on August 1, 2012 through 9:00 p.m. ET on Sunday, August 5, 2012.About Green Mountain Coffee Roasters, Inc.As a leader in specialty coffee and coffee makers, Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), is recognized for its award-winning coffees, innovative Keurig® Single Cup brewing technology, and socially responsible business practices. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in sustainably-grown coffee, and donating a portion of its pre-tax profits to social and environmental projects.GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its website, including news releases and its complete financial statements, as filed with the SEC. The Company encourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company’s automatic email news release delivery, individuals can receive news directly from GMCR as it is released.Forward-Looking StatementsCertain information contained in this release, including statements concerning expected performance such as those relating to net sales, earnings, cost savings, acquisitions and brand marketing support, are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Generally, these statements may be identified by the use of words such as “may,” “will,” “would,” “expect,” “should,” “anticipate,” “estimate,” “believe,” “forecast,” “intend,” “plan” and similar expressions intended to identify forward-looking statements. These statements may relate to: the expected impact of raw material costs and our pricing actions on our results of operations and gross margins, expected trends in net sales and earnings performance and other financial measures, the expected productivity and working capital improvements, the ability to maximize or successfully assert our intellectual property rights, the success of introducing and producing new product offerings, ability to attract and retain senior management, the impact of foreign exchange fluctuations, the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing, the expected results of operations of businesses acquired by us, our ability to issue debt or additional equity securities, our expectations regarding purchasing shares of our common stock under the existing authorizations, and the impact of the inquiry initiated by the SEC and any related litigation or additional governmental inquiry or enforcement proceedings.These and other forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by external factors such as damage to our reputation or brand name, business interruptions due to natural disasters or similar unexpected events, actions of competitors, customer relationships and financial condition, the ability to achieve expected cost savings and margin improvements, the successful acquisition and integration of new businesses, fluctuations in the cost and availability of raw and packaging materials, changes in regulatory requirements, and global economic conditions generally which would include the availability of financing, interest, inflation rates and investment return on retirement plan assets, as well as foreign currency fluctuations, risks associated with our information technology systems, the threat of data breaches or cyber-attacks, and other risks described in the Company’s filings with the Securities and Exchange Commission.Actual results could differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.GMCR-C Net income attributable to GMCR $26,970 5,160 622 157,349 June 25, 18,258 $56,348 Supplemental disclosures of cash flow information: $43.9 471,374 724 $42.3 $138,988 Third Quarter Fiscal Year 2012 Performance Highlights – Depreciation Net income attributable to GMCR Thirty-nine weeks ended June 25, 2011 Other long-term assets, net – 147,663,350 Cost of sales 98 $73,296 Current portion of long-term debt and capital lease obligations Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.(4) 155,459,690 Thirteen 310,321 488,182 7,876 7,859 $271,465 15,341 83%Note: Complete GAAP to Non-GAAP reconciliation tables provided with this release.(*) EBITDA is earnings before interest, taxes, depreciation, and amortization. LTM is last twelve months. Other current assets Current assets: 4,643 31%Brewers and Accessories 174,708 Basic income per share: GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Cash Flows(Dollars in thousands) (305,532) After tax: After tax: 4,811 +250 bpsIncrease in obsolescence 421 $- Fixed asset purchases included in accounts payable and not disbursed at the end of each period – 7,671 $116.9 Retained earnings 2,084 $1.76 11,475 Represents legal and accounting expenses related to the SEC inquiry and pending litigation classified as general and administrative expense.(2) (48,244) Amortization of identifiable intangibles (2) GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to Non-GAAP Reconciliation(Dollars in thousands, except per share data) Amortization of identifiable intangibles (3) Net income per common share – basic 40%Accounts receivable, net $425,159 GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to Non-GAAP Reconciliation(Dollars in thousands, except per share data) 2012 108%Coffee 10,573 850 4,442 7,193 30%Non-GAAP $131,903 29,587 Fixed assets, net Accounts payable $131.9 Income tax expense $73.3 June 25, 1,095 (Decrease) $73,296 – Effect of exchange rate changes on cash and cash equivalents Preferred stock, $0.10 par value: Authorized – 1,000,000 shares; No shares issued or outstanding Expenses related to SEC inquiry (2) Accrued compensation costs – Balance Sheet & Cash Flow Highlights – $(0.8) $76,138 $82,931 Intangibles, net $56,348 Non-GAAP net income per share 105.4 Commitments and contingencies (5,024) $229.4 (Decrease)Single-Serve Packs – (Decrease) $82.9 Basic weighted average shares outstanding 165,835 303,311 – Long-term liabilities related to assets held for sale GAAP 0.02 88,748 $0.47 265,511 Gain on sale of subsidiary (5) 95,512 Provision for sales returns 0.13 Third Quarter Fiscal Year 2012 Financial ReviewNet Sales 0.01 – Non-GAAP net income per share $0.46 49,258 $249.5 179%Thirty-nine weeks free cash flow (*) (513) Represents legal and accounting expenses related to the SEC inquiry and pending litigation classified as general and administrative expense.(3) After tax: 1,589 435,414 Source: Green Mountain Coffee Roasters, Inc.  WATERBURY, Vt.–(BUSINESS WIRE) 8.1.2012last_img read more

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Smith: Taking your business global

first_imgby Philip Smith In today’s global economy, Vermont businesses should consider sourcing and selling in foreign markets to grow their business. Whether your company is a subsidiary of a foreign company or a US-grown business looking to expand overseas, it is important to learn the alternatives to structuring foreign payments and receipts. Managing overseas financial transactions is no easy feat. Currency exposure, pricing, foreign bank services and other risks may leave you feeling overwhelmed. Here are some key considerations for managing your company’s finances in a foreign country.  First, it’s important to address the question of whether you should transact with foreign counterparties in U.S. currency or the counterparties’ local currencies. Many companies believe they can eliminate foreign exchange (FX) risk by conducting international transactions in their own currency. Unfortunately, the truth is that FX volatility risk between two currencies(link is external)[1] is always present. By transacting in their home currency, companies end up passing on the FX risk to their suppliers — many of whom will charge a premium for assuming the risk, or may fail to manage the risk appropriately. We suggest considering transacting in the foreign currency to avoid this and other problems. Here are some benefits associated with purchasing in local currency instead of U.S. dollars (USD):Reduce costs – When a supplier invoices in USD vs. local currency, the supplier assumes all of the exchange rate risk and may increase their prices in USD to protect themselves from currency market movement between the invoice and payment date.Visibility into FX rates – Obtain competitive exchange rates from your bank and know the exact amount of foreign currency paid to suppliers. Negotiate more favorable payment terms – Payments in foreign currency typically have faster credit posting to beneficiary accounts.   What if you’re sourcing from a related entity, such as a parent company?  In that case, it is still important to consider where the exchange rate risk lies and which party to the transaction is best suited to manage it.  For example, consider a U.S. subsidiary of a German company that purchases all its inventory from the parent company.  The U.S. represents 5% of the overall company, and the German parent sets pricing in U.S. dollars once per year.  As the manager of the U.S. business, you may want to ask how the parent company is managing one years’ worth of exchange rate risk.  Do they have a strategy in place to protect against market movement, or could pricing change if the market moves significantly?  As only 5% of the overall business, this exchange rate risk may not be a priority for the German company, but it is a significant risk for the U.S. entity.  We suggest discussing these factors with your suppliers, related or external, and revisiting it regularly, to avoid a shock to your business from an unforeseen market change.Second, companies who sell internationally may also prefer to accept payments from customers in U.S. dollars. However, accepting payment in foreign currency may open up new markets with customers who don’t have the ability to make payments in anything other than their local currency.  Plus, selling internationally in USD means that your products and services become more expensive in a stronger dollar environment, and you may run the risk of losing business to local competitors. Once your international payments strategy is in place, the next step is to determine the appropriate type of foreign exchange transaction.  FX transactions generally fall into two primary categories: spot and forward contracts.Spot contract- A spot contract is a legally binding agreement to sell one currency and buy another on the nearest, standard settlement (value) date. In other words, this is a ‘buy now, pay now’ deal at the current market exchange rate. According to Trade Global Financial(link is external)[2], some benefits of spot contracts include easy operation, 24-hour trade access and zero deposit requirements.Forward contract – A forward contract is a legally binding agreement to buy one currency and sell another at a rate agreed upon today. In other words, forward contracts are ‘buy now, pay later’ products, which enable you to essentially lock in an exchange rate at a set date in the future. These involve two parties; one party agrees to ‘buy’ at a later date (taking the long position), while another party agrees to ‘sell’ at a later date (taking the short position). The advantages of forward contracts include choosing a rate which is acceptable for your business and managing and budgeting cash flow without worrying about future FX volatility.As the FX market evolves, new solutions continue to be introduced. One recent innovation is the introduction of a guaranteed FX rate program.  A spot rate is based on the prevailing market rate two days before settlement, and a forward rate is based on the prevailing market rate for a specific FX amount and settlement date in the future.  What if a company would like visibility over their FX rate for future transactions but doesn’t know the exact date the FX payment will be sent or received?  A guaranteed FX rate allows a company to have a monthly rate for all their FX transactions without having to specify dates and amounts.  New solutions like the guaranteed rate will continue to make global business easier to execute. Finally, an alternative approach to mitigating an exchange rate risk would be to open a foreign currency account. This is an ideal solution when a customer is selling and purchasing a product in the same currency. By using a foreign currency account, a company effectively protects itself from currency volatility for any amounts where the volumes of the receivables match the company’s anticipated payable needs. When opening a foreign currency account, however, it is important to determine whether the volume and transaction activity outweighs the fees associated with a foreign currency account. A disadvantage of this approach is that a company ties up liquidity, as funds would be held in a foreign currency until later need arises.A financial advisor or bank partner can help you and your company expand globally. With guidance and planning, you can decide how best to manage your out-of-country assets.Philip Smith is Senior Vice President of Commercial Banking in the Vermont market at Bank of America Merrill Lynch.Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC(link is external), and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. [1] Bank of America Merrill Lynch, (n.d.).(link is external)[2] Trade Finance Global, (n.d.).(link is external)last_img read more

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Don’t drink the Kool-Aid

first_img 6SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Dana Dobson Dana Dobson is an award-winning public relations expert, keynote speaker and author of, “How to Reach Millions with Artful PR.” Over her 30-year career, she has developed winning PR and … Web: dana-dobson.com Details The phrase, “Drinking the Kool-Aid” is often used when a financial institution is so attached to its own products and services that if fails to consider the needs of its customers or the media. I have worked with financial institutions whose belief in their own offerings and philosophies made them blind to the real world, and worse yet, wound up offending the various stakeholders upon whom their success and failure depends.“Drinking the Kool-Aid” is not the same thing as “team spirit.” Passion for one’s organizational vision and mission is a wonderful thing. I’m talking about the C-suite executives who forget their bank or credit union is there to fulfill an unmet need that their audience actually wants.Consider the Ford Edsel story. The “Edsel” has gone down in history as a colossal marketing faux pas, or failure to gauge what their customers wanted. There are several reasons for its failure:The Edsel was designed by a very large committee. Time magazine called it, “irrational groupthink.” The Edsel designers were focused on designing a vehicle for a segment whose needs had already been met. They called it, “Edsel,” which didn’t help either.  They misinterpreted the research.  The Ford Company spent thousands of dollars on market research. What they didn’t know then was that people tend to lie on surveys, telling researchers what they think others, not themselves, want. Some argue that the survey data was viable, but Ford’s interpretation of it was incorrect.The car was, well, ugly, and had many mechanical flaws. The assembly lines had trouble putting it together. There were complaints about the taillights. The worst feedback of all, however, was about the appearance of the front grille. One of the nicer insults was that it looked like “an Oldsmobile sucking a lemon,” and there were other snarky anatomical references.Consider Ford’s mistakes when planning your next story pitch to the media.1. Take your head out of the sand. The media and your target audience are hungry for interesting stories, educational content and how your particular products and services solve problems. Find ways to provide information, products and services that meet the topical interests of the media, not the fiscal need of your organization. In other words, consider the interests of the media outlet you want to pitch rather than push a story that meets your agenda alone.2. Target the media who are interested in your industry. One of my editor friends vented the other day at lunch. She covers women’s issues and wellness, but daily in her email inbox she gets press releases and pitches about animals, auto racing, food and other unrelated topics. She said she used to forward the releases to the appropriate news desks, but lately, she’s just deleting them. Before you send press releases or requests for coverage to any media outlet, do a bit of research first. Find out what they need to do their jobs. It will be appreciated and yield good karma. 3. Test your product or service thoroughly before rolling it out to the media. The press had a field day with the Edsel. It became the “fun thing to criticize.”  If there’s any fault whatsoever with your product, how it’s delivered, or the quality of your customer service, there could be a storm of controversy in the form of customer complaints in social media or bad reviews from well-intentioned consumer advocacy reporters. Be sure your offering is a well-oiled machine with plenty of support from your friendly, well-trained employees.The Edsel was dubbed, “the wrong car at the wrong time.” So, stay away from the Kool-Aid and take care of your stakeholders first.last_img read more

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Men produce three All-Americans at NCAA meet

first_imgMen produce three All-Americans at NCAA meetThe women’s team failed to advance its only qualifier, the 4×100-meter relay. Megan RyanJune 9, 2012Jump to CommentsShare on FacebookShare on TwitterShare via EmailPrintThe Gophers men’s and women’s track and field teams competed in six events this week at the NCAA outdoor championships, but they produced only three All-Americans.Distance runner Hassan Mead and throwers Quentin Mege and Micah Hegerle each earned All-America honors after strong performances Friday.The first two days of competition proved disappointing, as none of Minnesota’s athletes survived the preliminary rounds.On day one, a nagging ankle injury forced Jack Szmanda to pull out of the decathlon after only three events. The junior suffered the injury two weeks earlier during training.“He was convinced he could do it, but I think really when the rubber hit the road … his ankle wasn’t quite ready,” assistant coach Lynden Reder said. “He was asking a lot of an ankle that he hurt pretty badly to come back that quickly.”Later that day, David Pachuta and Harun Abda failed to make the final in the 800-meter run. The two were placed in a stacked heat, and although they had the seventh and eighth fastest times overall, they did not advance, as they did not finish in the top two of their heat or with the next two fastest times.Instead, the 13th and 14th place runners qualified.“There was a lot of … grousing among coaches in regard to the way we are seeding the heats,” head men’s coach Steve Plasencia said. “On the other side of the coin, when the field is announced and you go out there and race, you’ve got to find a way, and we just weren’t finding a way. That’s what Wednesday and Thursday felt like.”Both Pachuta and Abda broke the school record that Pachuta set earlier in the year at Big Ten championships.The women’s team had its share of disappointment on the first day as well. The Gophers sent only one event – the 4×100 relay – and it did not advance to the final.Todea-Kay Willis, Nyoka Giles, Chimerem Okoroji and Kylie Peterson finished five places away from qualifying. “They kind of went in there with a purpose and were a lot more confident,” head women’s coach Matt Bingle said. “Obviously, we would’ve liked to run faster.”Okoroji said the team has no regrets.“We came here and we competed well, so we’re pretty happy with how everything went,” Okoroji said.The second day of competition proved just as difficult for the men. Nick Hutton finished seventh in his preliminary heat of the 1,500 meters and 15th overall. His personal record fell just short of cracking the advancing 12.Abda and Pachuta’s second chance to make a final also ended in failure. Their 4×400 relay team with Jacob Capek and Kevin Bradley finished sixth in their heat and 17th overall, well behind the eight that qualified.On Friday, the hammer throw duo of Mege and Hegerle finished fifth and seventh, respectively.“I told myself before coming in that the goal was to be an All-American — so top eight — and I would be happy with fifth and super happy with top three,” Mege said. “So, top five, I’m happy.”Mead, racing for the last time in his five-year Gophers career, placed fourth in the 5,000 meters.“It hasn’t hit me yet that this is my last collegiate race,” Mead said. “I think we ended on a good note. … It’s hard to put into words, my career here.”The men’s team finished with 11 team points. The NCAA championships end Saturday.last_img read more

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Henderson buys French shopping centre from ING

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Two Crime Novels From The Permanent Press

first_imgIn “Scuffletown,” Howard Owen’s new offering in his Willie Black murder mystery series, the intrepid, cynical, sardonic protagonist newspaper reporter from Richmond, VA is out to exonerate a good friend accused of murder. Willie, who’s part African American from Oregon Hill — “an alabaster ghetto of intolerance” — and a full pain in the butt to local cops and baddies, is 57 now, but he hasn’t lost it.He’s on his fourth wife and has kind of adjusted to working the night beat on his “beleaguered” local newspaper, a job beneath him, of course, as the inexperienced young suit who owns the paper and Willie’s admiring colleagues well know, but it’s a job he does well, especially when he’s told not to involve himself in an investigation but does so anyway, upholding standards of journalism and justice.Though the plot of “Scuffletown” seems a bit obvious, one of the book’s main attractions, as is usually true of a Howard Owen tale, is setting. The reader learns about a part of the country most people know little if anything about. Scuffletown is real, a part of the “Fan” district of Richmond (so named because of geographical design). As the book opens a crime has occurred in Scuffletown Park — lots of blood, though no one’s reported hearing gunshots. Odd, muses Willie: “Here in Richmond, we prefer to shoot each other. Knifing is just too damn personal.”It turns out that Willie’s roommate Abe Custalow, part Indian, has been photographed at the crime scene. It also turns out that Abe refuses to discuss why he was there, clamming up to Willie, the cops and his money-mad black lawyer who, despite comical hustling, will do the right thing. All of which brings up the other element of fiction for which Owen is noted: the creation of a cast of engaging diverse characters.In “Scuffletown,” many make return engagements from previous novels. These include Willie’s mother, Peggy, a self-medicating marijuana addict; Willie’s daughter Andy, Abe Custalow; Awesome Dude, a reclaimed homeless man who lives with Peggy; and a host of newsroom folks, local police, lawyers, and a former wife or two. Arguably, too many characters (and their stories) crowd onstage for a plot that extends only two weeks. Still “Scuffletown’s” a hoot, a fast and entertaining read and an affectionate elegiac tribute to print journalism.Westfarrow IslandPaul A. Barra notes that the titular setting of his thriller “Westfarrow Island” off the coast of Maine is not real, but “could be,” as could be The Clemson Project, the black ops CIA-type machinations at the center of big guy Anthony Tagliabue’s adventures, which the reader learns about as the plot gets under way.At first, though, the narrative focuses on a dead body that turns up on Anthony’s old work boat. Anthony appears to make a living as a fisherman, but he has another source of income which he reluctantly admits to his fiancée Agnes Ann. It involves commissions — assassinations and spy work — for a secret agency of the U.S. government.Barra continually surprises the reader with new directions in his multi-layered tale, one of which involves the racing of Francine, a spirited two-year-old filly Agnes Ann managed to wheedle out of her nasty ex-husband, a lawyer for The Mob. Will he try for vengeance? How will and how well will Barra connect the racing subplot, Tony and Agnes Ann’s romance, the investigation into the murder of Anthony’s old fishing buddy and new assignments from his black-ops handler?The author, a former naval officer and a newspaper reporter, writes of what he knows, which amounts to an impressive amount of lore about boats, fishing, navigation, the backwoods of Maine, as well as guns, horse grooming, and racing, especially in Saratoga Springs, and the Mafia.An epigraph, two beautiful lines from a Robert Browning lyric, signal a writer who cares about language, and indeed Barra demonstrates that in an opening sentence rich in metaphor: “People who drifted in a certain stratum of Bath society knew the sailorman named Joshua White, a man whose face was gullied by salt air, coarsened and darkened by sun, and whose life was a solitary pursuit.”Other literary touches evidence a writer who risks structural innovation — the tale is told mainly from an omniscient third-person point of view but occasional chapters in the first person by Agnes Ann soften the view of the big guy. If the resolution to the several narrative strands seems a falling off, evocation of place nicely compensates, and there is sufficient suspense to keep reading. Sharelast_img read more

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Subsea 7 Wins USD 450 Million Contract from Petrobras (Brazil)

first_imgSubsea 7 S.A. announced the award of a contract with a value (at the time of contract signature) of around U$450 million from Petrobras. The contract is for the operation of the Pipe Lay Support Vessel (PLSV) Seven Phoenix on a day rate basis for five years, with operations starting in the third quarter of this year.The vessel has operated for Petrobras for several years and is currently under contract with this client. The work scope of the contract is similar to that of other PLSVs Subsea 7 currently operates offshore Brazil, comprising project management, engineering and installation of flowlines, umbilicals and equipment supplied by Petrobras.Victor Bomfim, Senior Vice President for Brazil, said: “This contract further strengthens our presence in the day-rate PLSV business segment in Brazil, and we look forward to supporting Petrobras in future developments.”[mappress]Subsea 7, July 3, 2013last_img read more

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Pension reforms

first_img Employer Employee (net) Employee (tax relief) Total The changes will be phased-in over a four-year period with each employer having a ‘staging date’ for the implementation of enrolment. Inevitably, the impact to employers will be additional costs in terms of contributions and administration. Employers can elect to commence enrolment earlier than their staging date. However, this will result in earlier increased costs and, therefore, it is uncertain how many employers, without an existing eligible scheme, would opt to do this. The staging date for employers is determined by the number of employees within the company. In the first year (to 30 September 2013), only employers with 1,250+ employees will be obligated to start a workplace scheme and, throughout this first year, there is a further sliding scale to determine the month in which employers will need to enrol their employees. From November 2013 there are further phasing-in criteria and by February 2016 even the smallest employers will need to have enrolled their employees. Employees, although eligible to opt out of the scheme, will also be obligated to make a minimum contribution and, while they will be entitled to tax relief on contributions made, this could also result in increased financial pressures for employees. In addition to the phasing-in of enrolment, the minimum employer/employee contribution rates will also be introduced on a sliding scale (as illustrated below), resulting in variable contributions each year. Recap on pension reforms From October 2017 thereafter 3.0% 4.0% 1.0% 8.0% Gazette pensions survey Employers must enrol all eligible employees and provide them with a minimum level of contributions. Eligible employees include those working in the UK who:Employers can choose to implement workplace pension schemes using a combination of (i) new, existing, or amended qualifying schemes and/or (ii) a National Employment Savings Trusts (‘NEST’) – a government-operated scheme established for the purpose of workplace pensions (previously called Personal Accounts). From October 2012 to September 2016 1.0% 0.8% 0.2% 2.0% These contribution percentages will be applied to an employee’s gross salary (including overtime & bonuses) falling between specified earnings bands, currently £5,715pa and £38,185pa. Therefore, from October 2017, the minimum contributions an employee could have is £2,598pa (assuming the minimum 8% total contribution rate). Retirement planning is set for radical change this year – we want to hear about your firm’s pensions policy. Take the survey. Summarycenter_img Impact to claims The phasing-in period From October 2016 to September 2017 2.0% 2.4% 0.6% 5.0% are not already a member of a workplace pension scheme; are at least 22 years old; are under the state retirement age; and earn more than the minimum earnings threshold (likely to be £7,475pa in line with the current personal allowance). Due to the phasing-in rules, inevitably the calculation of lost benefits from workplace pension schemes will be an intricate process in the early years. The rules will be of concern to those both preparing and reviewing employee workplace pension claims to avoid misstatement of losses. Furthermore, careful consideration will also need to be given to the interaction between the loss of pension benefits and any loss of earnings claimed. However, once through the phasing-in stage the calculation/review process should become more straightforward – until the next round of reforms anyway. From October 2012 all employers will be obligated to provide employees with a workplace pension – part of the government’s drive to ensure more people are prepared financially for their retirement. Much has been written about the pension reforms from an employment/business perspective, but far less has been said about the impact on personal injury and fatal accident claims. There will almost certainly be an increase in the number of pension claims being brought. Indeed some insurers/lawyers are already seeing pension claims being made in anticipation of the forthcoming reforms. Before we look at the impact on claims however, let us first remind ourselves how the pension reforms work. In preparing or reviewing pensions aspects of personal injury and fatal accident claims, there will be various issues to consider and particular care needs to be taken during the four-year start-up phase to ensure claims are not overstated. Issues to consider include: 1. Phasing-in of enrolment The size of the company a claimant works for will need to be considered to determine when they would be eligible to join the workplace pension scheme and, therefore, when their pension benefits would have accumulated from. For example, where a claimant works for a company with 50-89 employees, their loss of pension should not be assessed before 1 July 2014, this being the staging date for companies with that number of employees. 2. Increasing contribution percentages Until September 2016 the minimum total contribution will be 2%. Therefore, for an individual on a salary of £20,000pa, total contributions would amount to £286pa. However, by October 2017 contributions would be based on an 8% minimum and amount to £1,143pa. Therefore, expected pension contributions need to be calculated with reference to the appropriate rates for each period to avoid misstatement. 3. Actual pension contributions If a claimant is able to undertake alternative or reduced work following the incident, they may still be entitled to join a workplace pension scheme. This being the case, a claimant’s actual contributions will need to be accounted for and must reflect their actual salary, size of post-incident employer and the date of their actual enrolment into the scheme. 4. Which loss methodology to adopt? A further issue to consider is which calculation methodology to adopt either (i) a pension projection approach, based on an estimate of future benefits payable on retirement, or (ii) the more straight forward contributions approach, where there is no separate pension loss but instead expected pension contributions are reimbursed as part of a claimant’s loss of earnings claim which can then be invested as they choose. The contributions approach does limit the speculation of calculating future pension fund performance. Therefore, given the current economic climate and poor pension fund performance, this approach may be preferable for claimants retiring in the short/medium term. However, if a claimant’s expected retirement is several years into the future, a pension projection could provide a more appropriate figure on which to calculate lost pension benefits. In addition, depending on the methodology adopted, any loss of earnings claim may also be impacted and would determine how employee/employer pension contributions should be treated. 5. Impact to future remuneration The introduction of workplace pension schemes will certainly result in an increased financial burden for employers. With this in mind, an employee’s expected salary may well be influenced by employers offsetting their pension contribution obligations, for example, reduced annual pay rises, a pay freeze or, perhaps controversially, an allocation of existing salary. All of these factors need to be considered in preparing and evaluating employee loss of pension/earnings claims. Amanda Fyffe is director of RGL London, Caroline Bedford is manager of RGL Manchesterlast_img read more

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MPI breezes in to Triton Knoll wind project

first_imgTriton Knoll, under development by a joint venture between Innogy Renewables UK and Statkraft, is located 20 miles (32 km) off the coast of Lincolnshire and 28 miles (48 km) from the coast of north Norfolk, UK.James Cotter, Triton Knoll project director said: “MPI already has a great UK footprint and engagement with the UK supply chain, and we expect to now work even more closely with them to build on that, as we progress towards contract completion and start of offshore works. We and our top tier contractors will be working with the most cost-efficient suppliers to deliver this project and our commitments to UK jobs and contracts.”MPI Offshore managing director Tony Inglis added: “MPI Offshore is proud to be selected as preferred supplier for foundations transport and installation within the Triton Knoll offshore wind project.”The overall expenditure of the project is set to be around GBP2 billion (USD2.65 billion) and there is the potential for approximately 3,000 UK jobs to be supported during construction, said MPI Offshore. www.mpi-offshore.comwww.tritonknoll.co.uklast_img read more

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