Exhibit A:

 

 

 

 

CHIQUITA BRANDS INTERNATIONAL, INC.
OPERATING STATISTICS – THURD QUARTER

(Unaudited - in millions, except for percentages and exchange rates)

 

 

 

Quarter
Ended
Sept. 30,

Percent Change
Favorable
(Unfavorable)

 

 

 

2004

2003

vs 2003

 

Net sales by segment

 

 

 

 

 

 

 

   Bananas

 

$

380.3

$

348.1

9.3%

 

   Other Fresh Produce

 

 

266.5

 

265.5

0.4%

 

   Other

 

 

14.8

 

13.9

6.5%

 

         Total net sales

 

 

661.6

 

627.5

5.4%

 

 

 

 

 

 

 

 

 

Segment operating income (loss)

 

 

 

 

 

 

 

   Bananas

 

$

13.7

$

14.8

(7.4%)

 

   Other Fresh Produce

 

 

(4.3)

 

6.4

n/a

 

   Other

 

 

0.7

 

1.5

(53.3%)

 

       Total operating income

 

 

10.1

 

22.7

(55.5%)

 

 

 

 

 

 

 

 

 

Operating margins by segment

 

 

 

 

 

 

 

   Bananas

 

 

3.6%

 

4.3%

(0.7) pts

 

   Other Fresh Produce

 

 

(1.6%)

 

2.4%

(4.0) pts

 

 

 

 

 

 

 

 

 

SG&A as a percent of sales

 

 

10.4%

 

9.8%

(0.6) pts

 

 

 

 

 

 

 

 

 

Company banana sales volume (40-pound boxes)

 

 

 

 

 

 

 

  Core European Markets1

 

 

12.1

 

12.3

(1.6%)

 

   Trading Markets2

 

 

1.7

 

1.7

0.0%

 

   North America

 

 

14.7

 

13.6

8.1%

 

   Asia  (joint venture)

 

 

4.1

 

3.7

10.8%

 

     Total

 

 

32.6

 

31.3

4.2%

 

 

 

 

 

 

 

 

 

Euro average exchange rate,
spot (dollars per euro)

 

 

1.22

 

1.13

8.0%

 

 

 

 

 

 

 

 

 

Euro average exchange rate,
hedged (dollars per euro)

 

 

1.18

 

1.06

11.3%

 

 

 

 

 

 

 

 

 

1 The 25 member countries of the European Union, plus non-E.U. states Norway, Iceland and Switzerland.
2 Other European and Mediterranean countries that are not members of the European Union.

CHIQUITA BRANDS INTERNATIONAL, INC.
OPERATING STATISTICS – NINE MONTHS
(Unaudited - in millions, except for percentages and exchange rates)

 

 

 

 

 

Nine Months Ended Sept. 30,

 

Percent Change Favorable (Unfavorable)

 

 

 

 

2004

 

2003

 

vs. 2003

Net sales by segment

 

 

 

 

 

 

Bananas

 

$ 1,258.3

 

$1,180.9

 

6.6%

 

Other Fresh Produce1

 

999.1

 

704.9

 

41.7%

 

Other

 

 

45.8

 

42.2

 

8.5%

 

 

Total net sales

 

2,303.2

 

1,928.0

 

19.5%

 

 

 

 

 

 

 

 

 

Segment operating income (loss)

 

 

 

 

 

 

 

Bananas

 

$ 78.6

 

$ 110.8

 

(29.1%)

 

Other Fresh Produce

 

(2.5)

 

5.5

 

n/a

 

Other

 

 

2.3

 

5.0

 

(54.0%)

 

 

Total operating income

 

78.4

 

121.3

 

(35.4%)

 

 

 

 

 

 

 

 

 

Operating margin by segment

 

 

 

 

 

 

 

Bananas

 

6.2%

 

9.4%

 

(3.2) pts

 

Other Fresh Produce

 

(0.3%)

 

0.8%

 

(1.1) pts

 

 

 

 

 

 

 

 

 

SG&A as a percent of sales

 

9.6%

 

8.7%

 

(0.9) pts

 

 

 

 

 

 

 

 

 

Company banana sales volume (40 lb. boxes)

 

 

 

 

 

 

 

Core European  Markets2

 

40.8

 

42.3

 

(3.5%)

 

Trading Markets3

 

3.9

 

5.0

 

(22.0%)

 

North America

 

43.0

 

41.0

 

4.9%

 

Asia (joint venture)

 

12.0

 

10.2

 

17.6%

 

 

Total

 

99.7

 

98.5

 

1.2%

 

 

 

 

 

 

 

 

 

Euro average exchange rate, spot (dollars per euro)

 

1.23

 

1.11

 

10.8%

 

 

 

 

 

 

 

 

 

Euro average exchange rate, hedged (dollars per euro)

 

1.17

 

1.04

 

12.5%

 

 

 

 

 

 

 

 

 

1 Most of the sales increase in the Other Fresh Produce segment is due to the acquisition of Atlanta AG, a German fresh produce distributor acquired in March 2003.
2 The 25 member countries of the European Union, plus non-E.U. states Norway, Iceland and Switzerland.
3 Other European and Mediterranean countries that are not members of the European Union.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit B:

 

 

 

 

 

 

 

CHIQUITA AVERAGE BANANA PRICES AND VOLUME
YEAR-OVER-YEAR PERCENT CHANGE

 2004 vs.  2003
(Unaudited)
 

 

 

Pricing

 

Volume

Region

Q3

YTD

 

Q3

YTD

North America

-2%

-3%

 

8%

5%

 

 

 

 

 

 

 

European Core Markets1

 

 

 

 

 

 

 U.S. Dollar basis2

12%

8%

 

-2%

-4%

 

Local Currency

4%

-2%

 

 

 

 

 

 

 

 

Trading Markets3

 

 

 

 

 

 

 U.S. Dollar basis2

13%

13%

 

0%

-22%

 

Local Currency

4%

2%

 

 

 

 

 

 

 

 

Asia

 

 

 

 

 

 

 U.S. Dollar basis2

-8%

3%

 

11%

18%

 

Local Currency

-11%

-2%

 

 

 

 

 

 

 

1 The 25 member countries of the European Union, plus non-E.U. states Norway, Iceland and Switzerland.
2 Prices on a U.S. dollar basis do not include the impact of hedging.
3 Other European and Mediterranean countries that are not members of the European Union.

 

 

 

 

 

 

 

Exhibit C:

 

 

 

 

 

NET EUROPEAN CURRENCY AND BANANA PRICING
YEAR-OVER-YEAR CHANGE - BETTER (WORSE)
Q3 2004 vs. Q3 2003
(Unaudited - in millions)

 

 

 

 

 

 

Currency Impact (Euro/Dollar)

 

 

 

 

 

Revenue

 

$14

 

Local Costs

 

(2)

 

Hedging

 

2

 

Balance sheet translation1

 

   1    

 

Net currency benefit

 

15

 

 

 

 

Pricing

 

 

 

European banana prices

  5 

 

 

 

 

 

 

Benefit from European currency and pricing

   $20    

 

 

 

 

 

 

1 Balance sheet translation was a gain of $1 million in the third quarter 2004 compared to no gain or loss in the third quarter 2003.

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit D:

 

 

 

 

 

CHIQUITA BRANDS INTERNATIONAL, INC.
DEBT SCHEDULE - THIRD QUARTER 2004
(Unaudited - in millions)

 

 

 

 

 

 

 

 

June 30,
2004

 

Additions

 

Payments and
Other Reductions

 

Sept. 30,
2004

 

 

 

 

 

 

 

 

 

 

Parent Company

 

 

 

 

 

 

 

 

10.56% Senior Notes1

 

$250.0

 

-

 

($209.1)

 

$40.9

7 1/2% Senior Notes

 

-

 

250.0

 

-

 

250.0

 

 

 

 

 

 

 

 

 

 

Subsidiaries

 

 

 

 

 

 

 

 

Chiquita Brands LLC facility1

 

 

 

 

 

 

 

 

 

Revolver

 

-

 

-

 

-

 

-

 

Term loan

 

-

 

-

 

-

 

-

 

Term loan for Atlanta AG

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

Shipping

 

95.2

 

-

 

(8.8)

 

86.4

Chiquita Chile

 

14.6

 

-

 

(1.3)

 

13.3

Other

 

     12.3

 

     4.9

 

 -

 

  17.2

 

 

 

 

 

 

 

 

 

 

Total Debt

 

$372.1

 

    $ 254.9

 

     $(219.2)

 

  $407.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEBT SCHEDULE – YEAR-TO-DATE 2004
(Unaudited - in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31,
2003

 

Additions

 

Payments and
Other Reductions

 

June 30,
2004

Parent Company

 

 

 

 

 

 

 

 

10.56% Senior Notes

 

$250.0

 

-

 

($209.1)

 

$40.9

7 1/2% Senior Notes

 

-

 

250.0

 

-

 

250.0

 

 

 

 

 

 

 

 

 

 

Subsidiaries

 

 

 

 

 

 

 

 

Chiquita Brands LLC facility2

 

 

 

 

 

 

 

 

 

Revolver

 

-

 

-

 

-

 

-

 

Term loan

 

-

 

-

 

-

 

-

 

Term loan for Atlanta AG

 

9.8

 

-

 

(9.8)

 

-

 

 

 

 

 

 

 

 

 

 

Shipping

 

108.4

 

-

 

(22.0)

 

86.4

Chiquita Chile

 

16.1

 

1.2

 

(4.0)

 

13.3

Other

 

     10.3

 

       6.9

 

-

 

      17.2

 

 

 

 

 

 

 

 

 

 

Total Debt

 

   $394.6

 

$258.1

 

    $ (244.9)

 

   $407.8

 

 

 

 

 

 

 

 

 

 

1 The company will use available cash to find its recently announced redemption of the remaining principal amount of 10.56% Senior Notes. The redemption date will be Dec. 3, 2004.

2 The company allowed this facility to lapse upon its maturity in June 2004. It expects to replace this facility with a new multiyear facility in early 2005 in the amount of at least $150 million.

 

Exhibit E:

CHIQUITA BRANDS INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FIGURES
(Unaudited - in millions)
 

 

 

 

Quarter Ended
 Sept. 30, 2004

 

Quarter Ended
 Sept. 30, 2003

 

 

Net Income

 

Diluted EPS

 

Net
Income

 

Diluted EPS

GAAP results

 

$ (19.8)

 

$ (0.49)

 

$ 9.9

 

$ 0.25

Adjust for:

 

 

 

 

 

 

 

 

 

Other income/expense1

 

19.7

 

0.49

 

--

 

--

 

Gain on sale of equity method investments

 

--

 

--

 

(12.0)

 

(0.30)

 

Severance, restructuring charges and farm closures

 

2.1

 

0.05

 

5.6

 

0.14

Adjusted

 

$ 2.0

 

$ 0.05

 

$ 3.5

 

$ 0.09

 

 

 

 

 

 

 

 

 

 

1       Other income/expense for the 2004 third quarter includes a loss of $22 million from the extinguishment of debt, partially offset by a $2 million gain relating to proceeds received as a result of the demutualization of a company with which Chiquita held pension annuity contracts.

The adjusted net income and diluted EPS figures included in the table above are not prepared in accordance with GAAP. We have included these figures in this press release in order to enhance investors’ overall understanding of our financial performance by excluding certain gains or charges that may not be indicative of our core operating results. The adjusted figures above should not be considered in isolation or as a substitute for net income or diluted EPS prepared in accordance with GAAP. Further, it is not fair to conclude from the presentation that additional gains or charges arising from the same or similar items will not be recognized in the future. We expect to continue to recognize some or all of the types of gains or charges for which adjustments have been made above.