Molson Coors Brewing (NYSE: TAP) reported Q2 EPS of $1.55, $0.87 better than the analyst estimate of $0.68. Revenue for the quarter came in at $2.5 billion versus the consensus estimate of $2.45 billion.

• Strong Second Quarter Performance Amidst Difficult Business Conditions from Coronavirus
• Net Sales Revenue Decreased 15.1% Reported and 14.3% in Constant Currency
• U.S. GAAP Net Income of $195 Million ($0.90 Per Share) Decreased 40.8%, and Non-GAAP EPS of $1.55 increased 2.0%
• Underlying EBITDA of $692 Million Increased 2.2% in Constant Currency
• Management Updates on Mitigating Actions Taking Steps Focused on Employee Safety and Immediate Business Challenges Positioning Business to Succeed in the Long-Term

"Last quarter we told you that our overarching focus as the whole world deals with the coronavirus pandemic was centered on two objectives: navigating the short term to protect our employees and to mitigate short-term business challenges of the coronavirus, and positioning our business for long-term success. That’s just what we’ve done. Through sound management and incredible work by our teams, we had a strong second quarter executing well against these two objectives and beating expectations for both top and bottom-line performance in the second quarter. We did it while delivering an improved cash position and preserving the biggest firepower in our marketing budgets so they can be ramped up in the back half of the year when we expect they will be most effective."

2020 Outlook

On March 27, 2020, we withdrew, in its entirety, our financial outlook for 2020 and beyond that we previously provided on February 12, 2020. We currently remain unable to provide an updated detailed financial outlook. However, we have provided information as it relates to our mitigating actions as discussed above, and also note the following related to the deferral of certain tax payments, as well as new U.S. federal income tax regulations.

As discussed above, the working capital and cash paid for taxes within our U.S. GAAP cash from operations and underlying free cash flow for the six months ended June 30, 2020, benefited from over $500 million in deferred tax payments from various government-sponsored payment deferral programs initiated in response to the coronavirus pandemic, of which we currently anticipate a significant portion to be paid in the second half of 2020 with the remaining amounts to be paid beyond this fiscal year.

As also discussed above, the U.S. Department of Treasury recently enacted final hybrid regulations which impact tax positions we took in 2018 and 2019 and have resulted in additional income tax expense of approximately $135 million recognized during the second quarter of 2020. The impact of the finalized regulations could result in cash tax outflows up to this amount in 2021. We continue to analyze the potential cash impacts of the final regulations to minimize any cash outflows.

For earnings history and earnings-related data on Molson Coors Brewing (TAP) click here.