Cott Reports Third Quarter 2015 Results and Declares Dividend
Oct 28, 2015
THIRD QUARTER 2015 HIGHLIGHTS
- Revenue increased 41% to
$756 million ($776 million excluding the impact of foreign exchange) compared to$535 million .
- Gross profit increased 234% to
$233 million compared to$70 million , which resulted in gross profit as a percentage of revenue of 30.8% compared to 13.0%.
- Adjusted EBITDA increased 103% to
$95 million ($98 million excluding the impact of foreign exchange) compared to$47 million . Reported EBITDA increased 114% to$86 million compared to$40 million .
- Reported free cash flow increased 28% to
$64 million , reflecting$92 million of net cash provided by operating activities less$28 million of capital expenditures. Adjusted free cash flow increased 29%.
Cott continued to focus on its strategic priorities designed to build long-term shareowner value with:
- Over
$2 million of DS Services synergies were realized during the third quarter for a total of$6 million of synergies realized to date.
- DS Services completed the acquisitions of two home and office delivery (“HOD”) water businesses towards the end of the quarter, which together are expected to generate approximately
$9 million in annual revenues. Three additional Asset Purchase Agreements have been signed for the acquisition of small HOD businesses with expected combined revenues of over$1 million per year. The acquisitions, which are subject to customary closing conditions, are expected to close in the fourth quarter of 2015 or first quarter of 2016.
- Volume stabilization within the
Cott North America business unit continued as contract manufacturing and sparkling and flavored water grew by approximately 50% and 9%, respectively, offsetting the general market declines in carbonated soft drinks (“CSDs”) and private label shelf stable juices (“SSJs”). Gross margins increased 130 basis points from 11.5% to 12.8% as a result of stable volumes.
- Over
“I am pleased with the progress made in diversifying our business via our organic growth in contract manufacturing and sparkling and flavored waters alongside the continued growth from DS Services,” commented
THIRD QUARTER 2015 GLOBAL PERFORMANCE
- Revenue increased 41% to
$756 million ($776 million excluding the impact of foreign exchange) compared to$535 million .
- Gross profit increased 234% to
$233 million , with gross margin of 30.8% compared to 13.0%. Excluding DS Services, gross margin increased by 110 basis points to 14.1% from 13.0% driven primarily by stable volumes in ourCott North America business unit, offset in part by the impact of foreign exchange and the competitive environment in ourU.K. /Europe business unit.
- Selling, general and administrative (“SG&A”) expenses were
$196 million compared to$50 million . The increase in SG&A expenses included$142 million in expenses associated with the addition of the DS Services business.
- Interest expense increased to
$27 million compared to$9 million due primarily to the additional debt incurred in connection with the DS Services acquisition.
- Other expense was
$1 million compared to$5 million (which included$4 million in costs associated with the redemption of$79 million of our 8.125% senior notes due in 2018 in a cash tender offer).
- Income tax benefit was
$6 million compared to expense of$2 million .
- Adjusted net income and adjusted net income per diluted share were
$10 million and$0.09 , respectively, compared to adjusted net income of$8 million and adjusted net income per diluted share of$0.08 . Reported net income and net income per diluted share were$5 million and$0.04 , respectively, compared to reported net income and net income per diluted share of$1 million and$0.01 , respectively.
- Adjusted EBITDA increased 103% to
$95 million ($98 million excluding the impact of foreign exchange) due primarily to the addition of the DS Services business and stable volumes within ourNorth America business unit, offset in part by the competitive environment in ourU.K. /Europe business unit.
- Reported free cash flow increased by 28% to
$64 million , reflecting$92 million of net cash provided by operating activities less$28 million of capital expenditures. Adjusted free cash flow increased 29%. Through the first nine months of the fiscal year, adjusted free cash flow increased 127% to$62 million . Reported free cash flow was$81 million through the first nine months of the fiscal year, reflecting$166 million of net cash provided by operating activities less$85 million of capital expenditures.
THIRD QUARTER 2015 REPORTING SEGMENT PERFORMANCE
Cott North America volume was broadly flat in actual cases and servings driven by increases in contract manufacturing and other growth areas such as sparkling waters and mixers, offset by a general market decline in CSDs and private label SSJs. Revenue was lower by 4% (lower by 2% excluding the impact of foreign exchange) at$339 million due primarily to an overall product mix shift into contract manufacturing and across other private label categories.
- DS Services revenue increased 3.2% to
$268 million due primarily to growth in HOD water, single cup coffee delivery, and retail sales, offset in part by a declining energy surcharge as a result of lower diesel fuel prices and reduced sales in traditional brew basket coffee. Revenue on an adjusted basis increased 4%.
U.K. /Europe volume decreased 6% in servings due to poor weather, general market decline, and the competitive environment within theUnited Kingdom . Revenue decreased 19% (decreased 12% excluding the impact of foreign exchange) to$140 million due to unfavorable foreign exchange rates, lower volumes and adverse mix.
- All Other revenue excluding the impact of foreign exchange was flat at
$17 million .
DECLARATION OF DIVIDEND
Our Board of Directors has declared a dividend of
THIRD QUARTER RESULTS CONFERENCE CALL
International: (913) 312-0713
Passcode: 856639
A live audio webcast will be available through
ABOUT
With over 9,000 employees,
Non-GAAP Measures
To supplement its reporting of financial measures determined in accordance with GAAP,
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management’s expectations as to the future based on plans, estimates and projections at the time
Factors that could cause actual results to differ materially from those described in this press release include, among others: our ability to compete successfully in a highly competitive beverage category; changes in consumer tastes and preferences for existing products and our ability to develop and timely launch new products that appeal to such changing consumer tastes and preferences; a loss of or a reduction in business in our legacy
The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in
Website: www.cott.com
COTT CORPORATION EXHIBIT 1 CONSOLIDATED STATEMENTS OF OPERATIONS RECONCILIATION OF NON-GAAP TO GAAP RESULTS (in millions of U.S. dollars, except share and per share amounts) Unaudited For the Three Months Ended October 3, 2015 ----------------------------------------------------------- Acquisition Unrealized and and other Integration Other non-cash GAAP Expenses Adjustments expenses Non-GAAP ---------- ----------- ----------- ---------- ---------- Revenue, net$ 755.6 $ -$ 2.1 $ -$ 757.7 Cost of sales 523.1 - - - 523.1 ---------- ----------- ----------- ---------- ---------- Gross profit 232.5 - 2.1 - 234.6 Selling, general and administrative expenses 196.2 - 0.9 - 197.1 Loss on disposal of property, plant & equipment 1.1 - - (1.1) - Restructuring - - - - - Asset impairments - - - - - Acquisition and integration expenses 6.6 (6.6) - - - ---------- ----------- ----------- ---------- ---------- Operating income 28.6 6.6 1.2 1.1 37.5 Other expense, net 0.6 - - 0.5 1.1 Interest expense, net 27.4 - - - 27.4 ---------- ----------- ----------- ---------- ---------- Income before income taxes - EBT 0.6 6.6 1.2 0.6 9.0 Income tax (benefit) expense (5.8) 2.5 0.4 0.2 (2.7) ---------- ----------- ----------- ---------- ---------- Net income$ 6.4 $ 4.1 $ 0.8 $ 0.4 $ 11.7 Less: Net income attributable to non- controlling interests 1.6 - - - 1.6 Less: Accumulated dividends on convertible preferred shares - - - - - Less: Accumulated dividends on non- convertible preferred shares - - - - - Less: Foreign exchange impact on redemption of preferred shares - - - - - ---------- ----------- ----------- ---------- ---------- Net income attributed to Cott Corporation$ 4.8 $ 4.1 $ 0.8 $ 0.4 $ 10.1 ========== =========== =========== ========== ========== Net income per common share attributed to Cott Corporation Basic$ 0.04 $ 0.09 Diluted$ 0.04 $ 0.09 Weighted average outstanding shares (millions) attributed to Cott Corporation Basic 109.7 109.7 Diluted 110.4 110.4 Dividends declared per common share$ 0.06 EBT$ 0.6 $ 9.0 Interest expense, net 27.4 27.4 Depreciation & Amortization 58.1 58.1 ---------- ---------- EBITDA$ 86.1 $ 94.5 ========== ========== For the Three Months Ended September 27, 2014 ------------------------------------------------------------ Acquisition Unrealized and and other Integration Other non-cash GAAP Expenses Adjustments expenses Non-GAAP ---------- ----------- ----------- ---------- ---------- Revenue, net$ 535.0 $ - $ - $ -$ 535.0 Cost of sales 465.5 - - - 465.5 ---------- ----------- ----------- ---------- ---------- Gross profit 69.5 - - - 69.5 Selling, general and administrative expenses 49.9 - (0.9) - 49.0 Loss on disposal of property, plant & equipment 0.4 - - (0.4) - Restructuring 0.1 - (0.1) - - Asset impairments (0.2) - 0.2 - - Acquisition and integration expenses 0.5 (0.5) - - - ---------- ----------- ----------- ---------- ---------- Operating income 18.8 0.5 0.8 0.4 20.5 Other expense, net 5.4 - (4.4) (0.3) 0.7 Interest expense, net 9.0 - - - 9.0 ---------- ----------- ----------- ---------- ---------- Income before income taxes - EBT 4.4 0.5 5.2 0.7 10.8 Income tax (benefit) expense 1.8 - - - 1.8 ---------- ----------- ----------- ---------- ---------- Net income$ 2.6 $ 0.5 $ 5.2 $ 0.7 $ 9.0 Less: Net income attributable to non- controlling interests 1.3 - - - 1.3 Less: Accumulated dividends on convertible preferred shares - - - - - Less: Accumulated dividends on non- convertible preferred shares - - - - - Less: Foreign exchange impact on redemption of preferred shares - - - - - ---------- ----------- ----------- ---------- ---------- Net income attributed to Cott Corporation$ 1.3 $ 0.5 $ 5.2 $ 0.7 $ 7.7 ========== =========== =========== ========== ========== Net income per common share attributed to Cott Corporation Basic$ 0.01 $ 0.08 Diluted$ 0.01 $ 0.08 Weighted average outstanding shares (millions) attributed to Cott Corporation Basic 93.6 93.6 Diluted 94.3 94.3 Dividends declared per common share$ 0.06 EBT$ 4.4 $ 10.8 Interest expense, net 9.0 9.0 Depreciation & Amortization 26.8 26.8 ---------- ---------- EBITDA$ 40.2 $ 46.6 ========== ========== COTT CORPORATION EXHIBIT 2 CONSOLIDATED STATEMENTS OF OPERATIONS RECONCILIATION OF NON-GAAP TO GAAP RESULTS (in millions of U.S. dollars, except share and per share amounts) Unaudited For the Nine Months Ended October 3, 2015 ----------------------------------------------------------- Acquisition Unrealized and and other Integration Other non-cash GAAP Expenses Adjustments expenses Non-GAAP --------- ----------- ----------- ---------- ---------- Revenue, net$ 2,245.2 $ 0.9 $ 5.5 $ -$ 2,251.6 Cost of sales 1,570.8 (3.3) - 1.2 1,568.7 --------- ----------- ----------- ---------- ---------- Gross profit 674.4 4.2 5.5 (1.2) 682.9 Selling, general and administrative expenses 574.9 - 3.7 - 578.6 Loss (gain) on disposal of property, plant & equipment 2.7 - 1.0 (3.8) (0.1) Restructuring - - - - - Asset impairments - - - - - Acquisition and integration expenses 15.4 (15.4) - - - --------- ----------- ----------- ---------- ---------- Operating income 81.4 19.6 0.8 2.6 104.4 Other (income) expense, net (8.8) - - 10.4 1.6 Interest expense, net 83.0 - - - 83.0 --------- ----------- ----------- ---------- ---------- Income (loss) before income taxes - EBT 7.2 19.6 0.8 (7.8) 19.8 Income tax (benefit) expense (16.3) 7.2 0.2 (1.8) (10.7) --------- ----------- ----------- ---------- ---------- Net income (loss)$ 23.5 $ 12.4 $ 0.6 $ (6.0) $ 30.5 Less: Net income attributable to non- controlling interests 4.6 - - - 4.6 Less: Accumulated dividends on convertible preferred shares 4.5 - - - 4.5 Less: Accumulated dividends on non- convertible preferred shares 1.4 - - - 1.4 Less: Foreign exchange impact on redemption of preferred shares 12.0 - (12.0) - - --------- ----------- ----------- ---------- ---------- Net income (loss) attributed to Cott Corporation$ 1.0 $ 12.4 $ 12.6 $ (6.0) $ 20.0 ========= =========== =========== ========== ========== Net income (loss) per common share attributed to Cott Corporation Basic$ 0.01 $ 0.20 Diluted$ 0.01 $ 0.20 Weighted average outstanding shares (millions) attributed to Cott Corporation Basic 100.8 100.8 Diluted 101.4 101.4 Dividends declared per common share$ 0.18 EBT$ 7.2 $ 19.8 Interest expense, net 83.0 83.0 Depreciation & Amortization 173.7 173.7 --------- ---------- EBITDA$ 263.9 $ 276.5 ========= ========== For the Nine Months Ended September 27, 2014 ----------------------------------------------------------- Acquisition Unrealized and and other Integration Other non-cash GAAP Expenses Adjustments expenses Non-GAAP --------- ----------- ----------- ---------- ---------- Revenue, net$ 1,559.3 $ - $ - $ -$ 1,559.3 Cost of sales 1,354.6 (1.2) - - 1,353.4 --------- ----------- ----------- ---------- ---------- Gross profit 204.7 1.2 - - 205.9 Selling, general and administrative expenses 147.5 - (1.2) - 146.3 Loss (gain) on disposal of property, plant & equipment 0.4 - - (0.5) (0.1) Restructuring 2.4 - (2.4) - - Asset impairments 1.7 - (1.7) - - Acquisition and integration expenses 3.4 (3.4) - - - --------- ----------- ----------- ---------- ---------- Operating income 49.3 4.6 5.3 0.5 59.7 Other (income) expense, net 22.9 3.5 (24.9) (1.6) (0.1) Interest expense, net 27.2 - - - 27.2 --------- ----------- ----------- ---------- ---------- Income (loss) before income taxes - EBT (0.8) 1.1 30.2 2.1 32.6 Income tax (benefit) expense 3.8 0.7 1.0 0.3 5.8 --------- ----------- ----------- ---------- ---------- Net income (loss)$ (4.6) $ 0.4 $ 29.2 $ 1.8 $ 26.8 Less: Net income attributable to non- controlling interests 4.1 - - - 4.1 Less: Accumulated dividends on convertible preferred shares - - - - - Less: Accumulated dividends on non- convertible preferred shares - - - - - Less: Foreign exchange impact on redemption of preferred shares - - - - - --------- ----------- ----------- ---------- ---------- Net income (loss) attributed to Cott Corporation$ (8.7) $ 0.4 $ 29.2 $ 1.8 $ 22.7 ========= =========== =========== ========== ========== Net income (loss) per common share attributed to Cott Corporation Basic$ (0.09) $ 0.24 Diluted$ (0.09) $ 0.24 Weighted average outstanding shares (millions) attributed to Cott Corporation Basic 94.1 94.1 Diluted 94.1 95.1 Dividends declared per common share$ 0.18 EBT$ (0.8) $ 32.6 Interest expense, net 27.2 27.2 Depreciation & Amortization 77.7 77.7 --------- ---------- EBITDA$ 104.1 $ 137.5 ========= ========== COTT CORPORATION EXHIBIT 3 CONSOLIDATED BALANCE SHEETS (in millions of U.S. dollars, except share amounts, U.S. GAAP) Unaudited ------------- ------------- October 3, January 3, 2015 2015 ------------- ------------- ASSETS Current assets Cash & cash equivalents$ 63.7 $ 86.2 Accounts receivable, net of allowance 324.4 305.7 Income taxes recoverable 1.1 1.6 Inventories 253.9 262.4 Prepaid expenses and other current assets 37.5 59.3 ------------- ------------- Total current assets 680.6 715.2 Property, plant & equipment, net 803.2 864.5 Goodwill 751.1 743.6 Intangibles and other assets, net 736.6 781.7 Deferred income taxes 2.9 2.5 Other tax receivable 0.9 0.2 ------------- ------------- Total assets$ 2,975.3 $ 3,107.7 ============= ============= LIABILITIES, PREFERRED SHARES AND EQUITY Current liabilities Short-term borrowings$ 152.0 $ 229.0 Current maturities of long-term debt 3.7 4.0 Accounts payable and accrued liabilities 436.2 420.3 ------------- ------------- Total current liabilities 591.9 653.3 Long-term debt 1,547.9 1,565.0 Deferred income taxes 95.3 119.9 Other long-term liabilities 77.4 71.8 ------------- ------------- Total liabilities 2,312.5 2,410.0 Convertible preferred shares,$1,000 stated value, no shares issued (January 3, 2015 - 116,054 shares issued) - 116.1 Non-convertible preferred shares,$1,000 stated value, no shares issued (January 3, 2015 - 32,711 shares issued) - 32.7 Equity Capital stock, no par - 109,689,642 shares issued (January 3, 2015 - 93,072,850 shares issued) 532.6 388.3 Additional paid-in-capital 53.0 46.6 Retained earnings 140.5 158.1 Accumulated other comprehensive loss (68.3) (51.0) ------------- ------------- Total Cott Corporation equity 657.8 542.0 Non-controlling interests 5.0 6.9 ------------- ------------- Total equity 662.8 548.9 ------------- ------------- Total liabilities, preferred shares and equity$ 2,975.3 $ 3,107.7 ============= ============= COTT CORPORATION EXHIBIT 4 CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of U.S. dollars) Unaudited For the Three Months Ended For the Nine Months Ended -------------------------- -------------------------- October 3, September 27, October 3, September 27, 2015 2014 2015 2014 ----------- ------------- ----------- ------------- Operating Activities Net income (loss)$ 6.4 $ 2.6$ 23.5 $ (4.6) Depreciation & amortization 58.1 26.8 173.7 77.7 Amortization of financing fees 1.2 0.7 3.6 1.9 Amortization of senior notes premium (1.3) - (4.2) - Share-based compensation expense 2.3 1.5 8.4 4.9 (Decrease) increase in deferred income taxes (4.7) 2.2 (21.6) 4.1 Write-off of financing fees and discount - 0.8 - 4.1 Loss on disposal of property, plant & equipment 1.1 0.4 2.7 0.4 Asset impairments - (0.2) - 1.7 Other non-cash items 4.7 - (11.8) (0.7) Change in operating assets and liabilities, net of acquisitions: Accounts receivable 37.8 27.0 (22.9) (39.3) Inventories 10.5 17.4 5.6 9.8 Prepaid expenses and other current assets 2.9 (0.5) 28.7 (1.5) Other assets (3.8) - (7.5) (0.2) Accounts payable and accrued liabilities, and other liabilities (24.3) (17.5) (14.3) (19.7) Income taxes recoverable 0.9 (0.7) 2.5 (1.1) ----------- ------------- ----------- ------------- Net cash provided by operating activities 91.8 60.5 166.4 37.5 ----------- ------------- ----------- ------------- Investing Activities Acquisitions, net of cash received (22.0) - (22.5) (80.8) Additions to property, plant & equipment (28.3) (10.8) (85.5) (31.4) Additions to intangibles and other assets (0.5) (1.5) (2.7) (4.3) Proceeds from sale of property, plant & equipment and sale-leaseback 0.4 1.6 40.9 1.6 ----------- ------------- ----------- ------------- Net cash used in investing activities (50.4) (10.7) (69.8) (114.9) ----------- ------------- ----------- ------------- Financing Activities Payments of long- term debt (1.0) (80.1) (2.9) (392.6) Issuance of long- term debt - - - 525.0 Borrowings under ABL 52.4 191.1 801.3 474.3 Payments under ABL (97.3) (156.0) (874.5) (455.4) Distributions to non-controlling interests (3.2) (2.4) (6.8) (7.2) Issuance of common shares 0.5 - 143.1 - Financing fees (0.1) (1.2) (0.3) (9.1) Preferred shares repurchased and cancelled - - (148.8) - Common shares repurchased and cancelled (0.1) (4.6) (0.8) (7.7) Dividends to common and preferred shareholders (6.5) (5.6) (24.5) (16.4) Payment of deferred consideration for acquisitions - (32.4) (2.5) (32.4) ----------- ------------- ----------- ------------- Net cash (used in) provided by financing activities (55.3) (91.2) (116.7) 78.5 ----------- ------------- ----------- ------------- Effect of exchange rate changes on cash (1.4) (2.1) (2.4) (0.9) ----------- ------------- ----------- ------------- Net (decrease) increase in cash & cash equivalents (15.3) (43.5) (22.5) 0.2 Cash & cash equivalents, beginning of period 79.0 90.9 86.2 47.2 ----------- ------------- ----------- ------------- Cash & cash equivalents, end of period$ 63.7 $ 47.4 $ 63.7 $ 47.4 =========== ============= =========== ============= COTT CORPORATION EXHIBIT 5 SEGMENT INFORMATION - NON-GAAP (in millions of U.S. dollars) Unaudited For the Three Months Ended October 3, 2015 ---------------------------------------------------------------------------- (in millions of U.S. North All dollars) America DSS U.K. Other Corporate Elimination Total -------- ------- ------ ------- --------- ----------- -------- Revenue Private label retail$ 270.4 $ 17.0 $ 65.4 $ 0.9 $ -$ (0.4) $ 353.3 Branded retail 30.0 22.9 42.0 0.9 - (0.3) 95.5 Contract packaging 31.1 - 30.3 5.7 - (2.4) 64.7 Home and office bottled water delivery - 173.3 - - - - 173.3 Office coffee services - 28.1 - - - - 28.1 Other 7.0 26.8 2.2 7.9 - (3.2) 40.7 ----------- -------- ------- ------ ------- --------- ----------- -------- Total$ 338.5 $ 268.1 $139.9 $ 15.4 $ -$ (6.3) $ 755.6 =========== ======== ======= ====== ======= --------- ----------- ======== Operating income (loss)$ 8.3 $ 14.0 $ 7.0 $ 3.1 $ (3.8) $ -$ 28.6 =========== ======== ======= ====== ======= ========= =========== ======== For the Three Months Ended September 27, 2014 ---------------------------------------------------------------------------- (in millions of U.S. North All dollars) America DSS U.K. Other Corporate Elimination Total -------- ------- ------ ------- --------- ----------- -------- Revenue Private label retail$ 291.7 $ -$ 84.0 $ 1.8 $ -$ (0.4) $ 377.1 Branded retail 28.9 - 47.9 1.3 - (0.4) 77.7 Contract packaging 23.0 - 37.7 6.1 - (1.2) 65.6 Home and office bottled water delivery - - - - - - - Office coffee services - - - - - - - Other 8.1 - 2.4 7.6 - (3.5) 14.6 ----------- -------- ------- ------ ------- --------- ----------- -------- Total$ 351.7 $ -$172.0 $ 16.8 $ -$ (5.5) $ 535.0 ----------- ======== ======= ====== ======= ========= =========== ======== Operating income (loss)$ 8.9 $ -$ 10.3 $ 2.6 $ (3.0) $ -$ 18.8 =========== ======== ======= ====== ======= ========= =========== ======== For the Nine Months Ended October 3, 2015 ---------------------------------------------------------------------------- (in millions of U.S. North All dollars) America DSS U.K. Other Corporate Elimination Total -------- ------- ------ ------- --------- ----------- -------- Revenue Private label retail$ 827.8 $ 49.7 $198.1 $ 3.7 $ -$ (1.6) $1,077.7 Branded retail 87.9 63.2 131.3 3.3 - (1.2) 284.5 Contract packaging 88.0 - 89.6 16.4 - (4.0) 190.0 Home and office bottled water delivery - 487.7 - - - - 487.7 Office coffee services - 89.8 - - - - 89.8 Other 22.5 75.0 6.9 21.4 - (10.3) 115.5 ----------- -------- ------- ------ ------- --------- ----------- -------- Total$1,026.2 $ 765.4 $425.9 $ 44.8 $ -$ (17.1) $2,245.2 =========== ======== ======= ====== ======= --------- =========== ======== Operating income (loss)$ 33.8 $ 25.7 $ 25.5 $ 8.4 $ (12.0) $ -$ 81.4 =========== ======== ======= ====== ======= ========= =========== ======== For the Nine Months Ended September 27, 2014 ---------------------------------------------------------------------------- (in millions of U.S. North All dollars) America DSS U.K. Other Corporate Elimination Total -------- ------- ------ ------- --------- ----------- -------- Revenue Private label retail$ 905.3 $ -$226.5 $ 4.5 $ -$ (0.8) $1,135.5 Branded retail 81.9 - 127.6 3.6 - (1.3) 211.8 Contract packaging 71.3 - 87.1 20.6 - (6.0) 173.0 Home and office bottled water delivery - - - - - - - Office coffee services - - - - - - - Other 23.3 - 4.1 21.2 - (9.6) 39.0 ----------- -------- ------- ------ ------- --------- ----------- -------- Total$1,081.8 $ -$445.3 $ 49.9 $ -$ (17.7) $1,559.3 ----------- ======== ======= ====== ======= ========= =========== ======== Operating income (loss)$ 26.7 $ -$ 23.2 $ 8.2 $ (8.8) $ -$ 49.3 =========== ======== ======= ====== ======= ========= =========== ======== COTT CORPORATION EXHIBIT 6 SUPPLEMENTARY INFORMATION - NON-GAAP - Analysis of Revenue by Reporting Segment Unaudited --------------------------------------------------------------------------- (in millions of U.S. dollars, except percentage amounts) For the Three Months Ended October 3, 2015 --------------------------------------------------------------------------- North All America DSS U.K. Other Elimination Total --------------------------------------------------------------------------- Change in revenue$ (13.2) $ 268.1 $ (32.1) $ (1.4) $ (0.8) $ 220.6 Impact of foreign exchange(1) 6.9 - 11.3 1.7 - 19.9 ------- ------- ------- ------- ----------- ------- Change excluding foreign exchange$ (6.3) $ 268.1 $ (20.8) $ 0.3 $ (0.8) $ 240.5 ------- ------- ------- ------- ----------- ------- Percentage change in revenue -3.8% - -18.7% -8.3% 14.5% 41.2% ------- ------- ------- ------- ----------- ------- Percentage change in revenue excluding foreign exchange -1.8% - -12.1% 1.8% 14.5% 45.0% ------- ------- ------- ------- ----------- ------- Impact of DSS Acquisition$ (2.3) $(268.1) $ - $ -$ 2.3 $(268.1) ------- ------- ------- ------- ----------- ------- Change excluding foreign exchange and DSS Acquisition$ (8.6) $ -$ (20.8) $ 0.3 $ 1.5 $ (27.6) ------- ------- ------- ------- ----------- ------- Percentage change in revenue excluding foreign exchange and DSS Acquisition -2.4% - -12.1% 1.8% -27.3% -5.2% ------- ------- ------- ------- ----------- ------- --------------------------------------------------------------------------- (in millions of U.S. dollars, except percentage amounts) For the Nine Months Ended October 3, 2015 --------------------------------------------------------------------------- North All America DSS U.K. Other Elimination Total --------------------------------------------------------------------------- Change in revenue$ (55.6) $ 765.4 $ (19.4) $ (5.1) $ 0.6 $ 685.9 Impact of foreign exchange(1) 15.5 - 38.3 3.7 - 57.5 ------- ------- ------- ------- ----------- ------- Change excluding foreign exchange$ (40.1) $ 765.4 $ 18.9 $ (1.4) $ 0.6 $ 743.4 ------- ------- ------- ------- ----------- ------- Percentage change in revenue -5.1% - -4.4% -10.2% -3.4% 44.0% ------- ------- ------- ------- ----------- ------- Percentage change in revenue excluding foreign exchange -3.7% - 4.2% -2.8% -3.4% 47.7% ------- ------- ------- ------- ----------- ------- Impact of DSS Acquisition$ (3.9) $(765.4) $ - $ -$ 3.9 $(765.4) ------- ------- ------- ------- ----------- ------- Change excluding foreign exchange and DSS Acquisition$ (44.0) $ -$ 18.9 $ (1.4) $ 4.5 $ (22.0) ------- ------- ------- ------- ----------- ------- Percentage change in revenue excluding foreign exchange and DSS Acquisition -4.1% - 4.2% -2.8% -25.4% -1.4% ------- ------- ------- ------- ----------- ------- (1) Impact of foreign exchange is the difference between the current year's revenue translated utilizing the current year's average foreign exchange rates less the current year's revenue translated utilizing the prior year's average foreign exchange rates. COTT CORPORATION EXHIBIT 7 SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW (in millions of U.S. dollars) Unaudited For the Three Months Ended ---------------------------- October 3, September 27, 2015 2014 ------------- ------------- Net cash provided by operating activities$ 91.8 $ 60.5 Less: Capital expenditures (28.3) (10.8) ------------- ------------- Free Cash Flow$ 63.5 $ 49.7 ============= ============= Plus: Bond redemption cash costs - 3.8 DSS integration capital expenditures 1.8 - Acquisition and integration cash costs 4.3 0.6 ------------- ------------- Adjusted Free Cash Flow$ 69.6 $ 54.1 ============= ============= For the Nine Months Ended ---------------------------- October 3, September 27, 2015 2014 ------------- ------------- Net cash provided by operating activities$ 166.4 $ 37.5 Less: Capital expenditures (85.5) (31.4) ------------- ------------- Free Cash Flow$ 80.9 $ 6.1 ============= ============= Plus: Bond redemption cash costs - 20.8 DSS integration capital expenditures 1.8 - Acquisition and integration cash costs 8.7 0.4 Less: Cash collateral (1) (29.4) - ------------- ------------- Adjusted Free Cash Flow$ 62.0 $ 27.3 ============= ============= (1) In connection with the DSS Acquisition,$29.4 million of cash was required to collateralize certain DSS self-insurance programs. The$29.4 million was funded with borrowings against our ABL facility, and the cash collateral was included within prepaid and other current assets on our Consolidated Balance Sheet atJanuary 3, 2015 . Subsequent toJanuary 3, 2015 additional letters of credit were issued from our available ABL facility capacity, and the cash collateral was returned to the Company and used to repay a portion of our outstanding ABL facility. DS SERVICES EXHIBIT 8 SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED REVENUES (in millions of U.S. dollars, except number of ESC charges and average ESC rate) Unaudited Proforma ----------------- ------------------ For the Three For the Three Months Ended Months Ended October 3, 2015 September 26, 2014 ----------------- ------------------ Revenue, net $ 268.1 $ 259.8 Energy Surcharge (ESC) --------------------------------------- Number of ESC charges (in millions) 2.9 3.0 Average ESC rate $ 2.39 $ 3.10 ESC Dollars $ 7.0 $ 9.2 2015 Adjusted ESCdollars (1) $ 9.1 Adjusted Revenue, net $ 270.2 $ 259.8 Adjusted Revenue, net growth vs. Proforma 4.0% (1) 2015 ESC charges at 2014 proforma average ESC rate
CONTACT:Jarrod Langhans Investor Relations Tel: (813) 313-1732 Email Contact
Source: