Primo Water Reports Full-Year And Fourth Quarter 2023 Results
Feb 22, 2024
- Reports strong year-over-year growth in Revenue, Net Income, Adjusted EBITDA, Margins and Adjusted Free Cash Flow
- Completes previously announced transaction to sell significant portion of its International businesses for
$575 million - Successfully executes leadership transition and welcomes new CEO
Robbert Rietbroek - Issues first quarter and full year 2024 Revenue, Adjusted EBITDA and Free Cash Flow guidance*
- Declares quarterly dividend of $0.09 per common share, a 13% increase over last year
“I am pleased with our performance, as our associates provided excellent service to our customers and strong financial results for our shareholders. Our full-year 2023 results exceeded the midpoint of our guidance for revenue, adjusted EBITDA and adjusted free cash flow for the combined continuing and discontinued operations,” said
“As the new CEO of
*Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures including “Adjusted EBITDA,” “Adjusted Free Cash Flow” and certain other non-GAAP financial measures included in this press release. Primo Water provides guidance for Adjusted EBITDA and Adjusted Free Cash Flow on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including restructuring costs and restructuring-related impairment charges, acquisition/divestiture related costs, gains or losses on the sale of businesses or other assets, and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company’s future GAAP financial results. For more information, please see the paragraph titled “Non-GAAP Measures” in this press release. |
FISCAL 2023 HIGHLIGHTS – CONTINUING OPERATIONS
- Revenue from continuing operations increased 5% to
$1.8 billion compared to$1.7 billion driven by revenue growth of 8% in Water Direct / Water Exchange and 18% in Water Refill / Water Filtration, offset primarily by the exit from the single-use retail bottled water business inNorth America and the exit from ourRussia business. - Gross margin from continuing operations increased 400 bps to 64.2% compared to 60.2%.
- Reported net income from continuing operations and reported net income per diluted share were
$64 million and$0.40 , respectively, compared to reported net income from continuing operations and net income per diluted share of$59 million and$0.36 , respectively. Adjusted net income from continuing operations and adjusted net income per diluted share were$100 million and$0.62 , respectively, compared to$87 million and$0.54 , respectively. - Adjusted EBITDA from continuing operations increased 11% to
$381 million and Adjusted EBITDA margin increased 120 bps to a record 21.5%.
(Unless stated otherwise, all fourth quarter 2023 comparisons are relative to the fourth quarter of 2022 and all fiscal year 2023 comparisons are relative to fiscal year 2022; all information is in
For the Fiscal Year Ended | |||||
(USD $M unless otherwise noted) | December | December | Y/Y Change | ||
Revenue, net | $ 1,771.8 | $ 1,693.2 | 5 % | ||
Net income from continuing operations | $ 63.8 | $ 58.7 | $ 5.1 | ||
Net income from continuing operations | $ 0.40 | $ 0.36 | $ 0.04 | ||
Adjusted net income from continuing | $ 99.8 | $ 86.8 | $ 13.0 | ||
Adjusted net income from continuing | $ 0.62 | $ 0.54 | $ 0.08 | ||
Adjusted EBITDA | $ 380.7 | $ 343.8 | 11 % | ||
Adjusted EBITDA margin % | 21.5 % | 20.3 % | 120 bps |
OUTLOOK
Q1 2024 Range | FY 2024 Range | |||
($ in millions) | Low | High | Low | High |
Revenue | ||||
Adjusted EBITDA | ||||
Cash Taxes | ||||
Cash Interest | ||||
Cap-Ex | ~ 7% of Revenue + | |||
Adj. Free Cash Flow |
FOURTH QUARTER 2023 RESULTS CONFERENCE CALL
International: (416) 764-8659
Conference ID: 60390249
This is a live, listen-only dial-in telephone line.
A slide presentation (including certain additional non-GAAP comparative measures for 2023, 2022 and 2021 on a continuing operations basis) and live audio webcast will be available through
FISCAL YEAR PERFORMANCE – CONTINUING OPERATIONS
- Revenue increased 5% to
$1,772 million compared to$1,693 million driven by revenue growth of 8% in Water Direct / Water Exchange and 18% in Water Refill / Water Filtration, due primarily to pricing initiatives and increased demand for products and services from residential and business customers. Revenue growth by channel is tabulated below:
For the Fiscal Year Ended | |||||||
(USD $M unless otherwise noted) | December | December | Change | % Change | |||
Revenue, net | |||||||
Water Direct/Water Exchange | $ 1,345.3 | $ 1,250.2 | $ 95.1 | 8 % | |||
Water Refill/Water Filtration | 226.9 | 192.0 | $ 34.9 | 18 % | |||
Other Water | 51.9 | 73.8 | $ (21.9) | (30) % | |||
Water Dispensers | 57.5 | 70.5 | $ (13.0) | (18) % | |||
Other | 90.2 | 106.7 | $ (16.5) | (15) % | |||
Revenue, net as reported | $ 1,771.8 | $ 1,693.2 | $ 78.6 | 5 % | |||
Foreign exchange impact | 2.4 | — | 2.4 | n/a | |||
Revenue excluding foreign exchange | $ 1,774.2 | $ 1,693.2 | $ 81.0 | 5 % |
- Gross profit increased 12% to
$1,137 million compared to$1,019 million . Gross margin increased 400 bps to 64.2% compared to 60.2%, driven by pricing initiatives, increased demand and operating efficiencies. - SG&A expenses increased 10% to
$976 million compared to$884 million . The increase was driven by higher selling and operating costs including delivery commissions that supported volume and revenue growth. - Reported net income from continuing operations and net income per diluted share were
$64 million and$0.40 , respectively, compared to reported net income from continuing operations and net income per diluted share of$59 million and$0.36 , respectively. Adjusted net income from continuing operations and adjusted net income per diluted share were$100 million and$0.62 , respectively, compared to$87 million and$0.54 , respectively. - Adjusted EBITDA increased 11% to
$381 million compared to$344 million , driven primarily by pricing initiatives, customer demand and operating efficiencies. Adjusted EBITDA margin was 21.5% for the year, compared to 20.3%. - Net cash provided by operating activities from continuing operations of
$289 million , less$147 million of capital expenditures and additions to intangible assets, resulted in$142 million of free cash flow, or$158 million of adjusted free cash flow (adjusting for the items set forth on Exhibit 7), compared to adjusted free cash flow of$85 million in the prior year.
FOURTH QUARTER PERFORMANCE – CONTINUING OPERATIONS
For the Three Months Ended | |||||
(in millions of | December | December | Y/Y Change | ||
Revenue, net | $ 438.7 | $ 405.1 | 8 % | ||
Net income from continuing operations | $ 13.3 | $ 34.8 | $ (21.5) | ||
Net income from continuing operations | $ 0.08 | $ 0.22 | $ (0.14) | ||
Adjusted net income from continuing | $ 18.6 | $ 20.6 | $ (2.0) | ||
Adjusted net income from continuing | $ 0.12 | $ 0.13 | $ (0.01) | ||
Adjusted EBITDA | $ 94.9 | $ 88.6 | 7 % | ||
Adjusted EBITDA margin % | 21.6 % | 21.9 % | -30 bps |
- Revenue increased 8% to
$439 million compared to$405 million in the prior quarter. The increase was driven by revenue growth of 8% in Water Direct / Water Exchange and 15% in Water Refill / Water Filtration, due primarily to pricing initiatives and increased demand for products and services from residential and business customers. Revenue growth by channel is tabulated below:
For the Three Months Ended | |||||||
(USD $M unless otherwise noted) | December | December | Change | % Change | |||
Revenue, net | |||||||
Water Direct/Water Exchange | $ 333.8 | $ 309.3 | $ 24.5 | 8 % | |||
Water Refill/Water Filtration | 57.3 | 49.9 | $ 7.4 | 15 % | |||
Other Water | 15.1 | 8.0 | $ 7.1 | 89 % | |||
Water Dispensers | 11.6 | 14.1 | $ (2.5) | (18) % | |||
Other | 20.9 | 23.8 | $ (2.9) | (12) % | |||
Revenue, net as reported | $ 438.7 | $ 405.1 | $ 33.6 | 8 % | |||
Foreign exchange impact | 0.1 | — | 0.1 | n/a | |||
Revenue excluding foreign exchange | $ 438.8 | $ 405.1 | $ 33.7 | 8 % |
- Gross profit increased 14% to
$284 million compared to$249 million . Gross margin increased 330 bps to 64.7% compared to 61.4%, driven by pricing initiatives, increased demand and operating efficiencies. - SG&A expenses increased 13% to
$250 million compared to$221 million . The increase was driven by higher selling and operating costs including delivery commissions that supported volume and revenue growth. - Reported net income from continuing operations and net income per diluted share were
$13 million and$0.08 , respectively, compared to reported net income from continuing operations and net income per diluted share of$35 million and$0.22 , respectively. Adjusted net income and adjusted net income per diluted share were$19 million and$0.12 , respectively, compared to$21 million and$0.13 in the prior year. - Adjusted EBITDA increased 7% to
$95 million compared to$89 million , driven primarily by pricing initiatives, customer demand and effective expense management. Adjusted EBITDA margin was 21.6% for the quarter, compared to 21.9%. - Net cash provided by operating activities from continuing operations of
$67 million , less$38 million of capital expenditures and additions to intangible assets, resulted in$29 million of free cash flow, or$37 million of adjusted free cash flow (adjusting for the items set forth on Exhibit 7), compared to adjusted free cash flow of$31 million in the prior year.
QUARTERLY DIVIDEND
SHARE REPURCHASE PROGRAM
During 2023,
The actual timing, manner, number, and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of
ABOUT
Non-GAAP Measures
To supplement its reporting of financial measures determined in accordance with
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: financial condition and results of operations;
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.primowatercorp.com
EXHIBIT 1 | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Fiscal Year Ended | ||||||
|
|
|
| ||||
Revenue, net | $ 438.7 | $ 405.1 | $ 1,771.8 | $ 1,693.2 | |||
Cost of sales | 154.8 | 156.4 | 634.8 | 674.0 | |||
Gross profit | 283.9 | 248.7 | 1,137.0 | 1,019.2 | |||
Selling, general and administrative expenses | 250.0 | 221.3 | 976.0 | 883.8 | |||
Loss on disposal of property, plant and equipment, net | 5.3 | 3.3 | 9.1 | 7.4 | |||
Acquisition and integration expenses | 3.5 | 2.6 | 9.5 | 12.1 | |||
Impairment charges | — | — | — | 11.2 | |||
Gain on sale of property | (15.7) | (38.8) | (21.0) | (38.8) | |||
Operating income | 40.8 | 60.3 | 163.4 | 143.5 | |||
Other expense (income), net | 4.9 | (2.2) | 1.2 | (2.5) | |||
Interest expense, net | 16.6 | 18.2 | 71.4 | 67.8 | |||
Income from continuing operations before income taxes | 19.3 | 44.3 | 90.8 | 78.2 | |||
Income tax expense | 6.0 | 9.5 | 27.0 | 19.5 | |||
Net income from continuing operations | $ 13.3 | $ 34.8 | $ 63.8 | $ 58.7 | |||
Net income (loss) from discontinued operations, net of income | 164.3 | 22.7 | 174.3 | (29.1) | |||
Net income | $ 177.6 | $ 57.5 | $ 238.1 | $ 29.6 | |||
Net income (loss) per common share | |||||||
Basic: | |||||||
Continuing operations | $ 0.08 | $ 0.22 | $ 0.40 | $ 0.36 | |||
Discontinued operations | $ 1.03 | $ 0.14 | $ 1.09 | $ (0.18) | |||
Net income | $ 1.11 | $ 0.36 | $ 1.49 | $ 0.18 | |||
Diluted: | |||||||
Continuing operations | $ 0.08 | $ 0.22 | $ 0.40 | $ 0.36 | |||
Discontinued operations | $ 1.03 | $ 0.14 | $ 1.08 | $ (0.18) | |||
Net income | $ 1.11 | $ 0.36 | $ 1.48 | $ 0.18 | |||
Weighted-average common shares outstanding (in thousands) | |||||||
Basic | 159,471 | 159,857 | 159,452 | 160,763 | |||
Diluted | 160,523 | 161,061 | 160,619 | 161,885 |
EXHIBIT 2 | |||
CONSOLIDATED BALANCE SHEETS | |||
(in millions of | |||
Unaudited | |||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 507.9 | $ 78.8 | |
Accounts receivable, net of allowance of | 156.0 | 170.7 | |
Inventories | 47.3 | 65.3 | |
Prepaid expenses and other current assets | 26.0 | 35.9 | |
Current assets of discontinued operations | 128.7 | 187.3 | |
Total current assets | 865.9 | 538.0 | |
Property, plant and equipment, net | 556.5 | 549.5 | |
Operating lease right-of-use-assets | 136.0 | 143.2 | |
1,004.6 | 997.2 | ||
Intangible assets, net | 714.2 | 723.8 | |
Other long-term assets, net | 20.2 | 25.9 | |
Long-term assets of discontinued operations | 225.6 | 689.4 | |
Total assets | $ 3,523.0 | $ 3,667.0 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Short-term borrowings | $ — | $ 205.8 | |
Current maturities of long-term debt | 14.2 | 10.9 | |
Accounts payable and accrued liabilities | 276.4 | 282.6 | |
Current operating lease obligations | 25.6 | 26.6 | |
Current liabilities of discontinued operations | 109.9 | 164.7 | |
Total current liabilities | 426.1 | 690.6 | |
Long-term debt | 1,270.8 | 1,252.3 | |
Operating lease obligations | 124.0 | 127.6 | |
Deferred tax liabilities | 144.2 | 142.5 | |
Other long-term liabilities | 64.4 | 55.4 | |
Long-term liabilities of discontinued operations | 52.2 | 115.7 | |
Total liabilities | 2,081.7 | 2,384.1 | |
Equity | |||
Common shares, no par value -159,480,638 shares issued ( | 1,288.6 | 1,283.2 | |
Additional paid-in-capital | 90.6 | 91.3 | |
Retained earnings (accumulated deficit) | 167.2 | (9.4) | |
Accumulated other comprehensive loss | (105.1) | (82.2) | |
1,441.3 | 1,282.9 | ||
Total liabilities and equity | $ 3,523.0 | $ 3,667.0 |
EXHIBIT 3 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Fiscal Year Ended | ||||||
|
|
|
| ||||
Cash flows from operating activities: | |||||||
Net income | $ 177.6 | $ 57.5 | $ 238.1 | $ 29.6 | |||
Net income (loss) from discontinued operations, net of income taxes | 164.3 | 22.7 | 174.3 | (29.1) | |||
Net income from continuing operations | $ 13.3 | $ 34.8 | $ 63.8 | $ 58.7 | |||
Adjustments to reconcile net income from continuing operations to | |||||||
Depreciation and amortization | 49.7 | 46.1 | 193.3 | 182.0 | |||
Amortization of financing fees | 0.9 | 0.8 | 3.4 | 3.3 | |||
Share-based compensation expense | 8.0 | 6.7 | 14.1 | 16.4 | |||
Provision for deferred income taxes | (4.6) | 9.6 | 1.5 | 17.3 | |||
Impairment charges | — | — | — | 11.2 | |||
Loss on disposal of property, plant and equipment, net | 5.3 | 3.3 | 9.1 | 7.4 | |||
Gain on sale of property | (15.7) | (38.8) | (21.0) | (38.8) | |||
Other non-cash items | 8.7 | 6.0 | 4.1 | 6.0 | |||
Change in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 19.4 | 16.2 | 15.2 | (2.6) | |||
Inventories | 2.6 | 2.9 | 7.2 | (9.4) | |||
Prepaid expenses and other current assets | (2.7) | (9.8) | 3.0 | (4.4) | |||
Other assets | 0.2 | (3.0) | (0.7) | (3.7) | |||
Accounts payable and accrued liabilities and other liabilities | (18.1) | (8.4) | (3.8) | (5.1) | |||
Net cash provided by operating activities from continuing operations | 67.0 | 66.4 | 289.2 | 238.3 | |||
Cash flows from investing activities of continuing operations: | |||||||
Acquisitions, net of cash received | (10.0) | (6.0) | (34.6) | (10.3) | |||
Additions to property, plant and equipment | (35.7) | (43.5) | (139.2) | (162.1) | |||
Additions to intangible assets | (2.0) | — | (8.5) | (6.7) | |||
Proceeds from sale of property, plant and equipment | — | 2.0 | 0.4 | 2.7 | |||
Proceeds from sale of property | 22.3 | 50.3 | 31.0 | 50.3 | |||
Other investing activities | 0.8 | 0.7 | 3.6 | (1.0) | |||
Net cash (used in) provided by investing activities from continuing | (24.6) | 3.5 | (147.3) | (127.1) | |||
Cash flows from financing activities of continuing operations: | |||||||
Payments of long-term debt | (2.8) | (3.4) | (11.5) | (12.1) | |||
Proceeds from short-term borrowings | — | 15.0 | 116.0 | 37.0 | |||
Payments on short-term borrowings | (132.0) | (51.0) | (313.0) | (51.0) | |||
Issuance of common shares | 0.4 | 0.4 | 6.1 | 2.5 | |||
Common shares repurchased and canceled | (3.6) | (14.7) | (26.0) | (27.7) | |||
Dividends paid to common and preferred shareholders | (13.1) | (11.2) | (51.7) | (45.4) | |||
Payment of contingent consideration for acquisitions | (0.2) | (1.2) | (1.5) | (3.5) | |||
Other financing activities | (1.2) | 8.8 | (8.8) | 8.8 | |||
Net cash used in financing activities from continuing operations | (152.5) | (57.3) | (290.4) | (91.4) | |||
Cash flows from discontinued operations: | |||||||
Operating activities of discontinued operations | 24.1 | 32.2 | 61.1 | 43.3 | |||
Investing activities of discontinued operations | 520.7 | (8.1) | 488.3 | (54.4) | |||
Financing activities of discontinued operations | (4.5) | (12.2) | 4.6 | (11.4) | |||
Net cash provided by (used in) discontinued operations | 540.3 | 11.9 | 554.0 | (22.5) | |||
Effect of exchange rate changes on cash | 2.5 | 2.6 | 2.4 | (3.1) | |||
Net increase (decrease) in cash, cash equivalents and restricted | 432.7 | 27.1 | 407.9 | (5.8) | |||
Cash and cash equivalents and restricted cash, beginning of | 97.8 | 95.5 | 122.6 | 128.4 | |||
Cash and cash equivalents and restricted cash, end of period | $ 530.5 | $ 122.6 | $ 530.5 | $ 122.6 | |||
Cash and cash equivalents and restricted cash of discontinued | 22.6 | 43.8 | 22.6 | 43.8 | |||
Cash and cash equivalents and restricted cash of continuing | $ 507.9 | $ 78.8 | $ 507.9 | $ 78.8 |
EXHIBIT 4 | ||||||
SEGMENT INFORMATION | ||||||
(in millions of | ||||||
Unaudited | ||||||
For the Three Months Ended | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 333.8 | $ — | $ 333.8 | |||
Water Refill/Water Filtration | 57.3 | — | 57.3 | |||
Other Water | 15.1 | — | 15.1 | |||
Water Dispensers | 11.6 | — | 11.6 | |||
Other | 20.8 | 0.1 | 20.9 | |||
Total | $ 438.6 | $ 0.1 | $ 438.7 | |||
Gross profit | $ 283.8 | $ 0.1 | $ 283.9 | |||
Gross margin % | 64.7 % | 100.0 % | 64.7 % | |||
Selling, general and administrative expenses | $ 232.5 | $ 17.5 | $ 250.0 | |||
SG&A % of revenue | 53.0 % | NM | 57.0 % | |||
Operating income (loss) | $ 59.9 | $ (19.1) | $ 40.8 | |||
Depreciation and amortization | $ 49.4 | $ 0.3 | $ 49.7 | |||
For the Three Months Ended | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 309.3 | $ — | $ 309.3 | |||
Water Refill/Water Filtration | 49.9 | — | 49.9 | |||
Other Water | 8.0 | — | 8.0 | |||
Water Dispensers | 14.1 | — | 14.1 | |||
Other | 23.7 | 0.1 | 23.8 | |||
Total | $ 405.0 | $ 0.1 | $ 405.1 | |||
Gross profit | $ 248.6 | $ 0.1 | $ 248.7 | |||
Gross margin % | 61.4 % | 100.0 % | 61.4 % | |||
Selling, general and administrative expenses | $ 206.8 | $ 14.5 | $ 221.3 | |||
SG&A % of revenue | 51.1 % | NM | 54.6 % | |||
Operating income (loss) | $ 74.5 | $ (14.2) | $ 60.3 | |||
Depreciation and amortization | $ 45.8 | $ 0.3 | $ 46.1 | |||
For the Fiscal Year Ended | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 1,345.3 | $ — | $ 1,345.3 | |||
Water Refill/Water Filtration | 226.9 | — | 226.9 | |||
Other Water | 51.9 | — | 51.9 | |||
Water Dispensers | 57.5 | — | 57.5 | |||
Other | 89.6 | 0.6 | 90.2 | |||
Total | $ 1,771.2 | $ 0.6 | $ 1,771.8 | |||
Gross profit | $ 1,136.4 | $ 0.6 | $ 1,137.0 | |||
Gross margin % | 64.2 % | 100.0 % | 64.2 % | |||
Selling, general and administrative expenses | $ 919.7 | $ 56.3 | $ 976.0 | |||
SG&A % of revenue | 51.9 % | NM | 55.1 % | |||
Operating income (loss) | $ 222.2 | $ (58.8) | $ 163.4 | |||
Depreciation and amortization | $ 191.9 | $ 1.4 | $ 193.3 | |||
For the Fiscal Year Ended | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 1,242.8 | $ 7.4 | $ 1,250.2 | |||
Water Refill/Water Filtration | 192.0 | — | 192.0 | |||
Other Water | 73.8 | — | 73.8 | |||
Water Dispensers | 70.5 | — | 70.5 | |||
Other | 106.5 | 0.2 | 106.7 | |||
Total | $ 1,685.6 | $ 7.6 | $ 1,693.2 | |||
Gross profit | $ 1,013.5 | $ 5.7 | $ 1,019.2 | |||
Gross margin % | 60.1 % | 75.0 % | 60.2 % | |||
Selling, general and administrative expenses | $ 830.8 | $ 53.0 | $ 883.8 | |||
SG&A % of revenue | 49.3 % | NM | 52.2 % | |||
Operating income (loss) | $ 203.7 | $ (60.2) | $ 143.5 | |||
Depreciation and amortization | $ 179.6 | $ 2.4 | $ 182.0 |
EXHIBIT 5 | |||||
SUPPLEMENTARY INFORMATION – NON-GAAP – ANALYSIS OF REVENUE AND GROSS PROFIT BY REPORTING | |||||
(in millions of | |||||
Unaudited | |||||
For the Three Months Ended | |||||
Other | Primo | ||||
Change in revenue | $ 33.6 | $ — | $ 33.6 | ||
Impact of foreign exchange (a) | 0.1 | — | 0.1 | ||
Change excluding foreign exchange | $ 33.7 | $ — | $ 33.7 | ||
Percentage change in revenue | 8.3 % | — % | 8.3 % | ||
Percentage change in revenue excluding foreign exchange | 8.3 % | — % | 8.3 % | ||
For the Fiscal Year Ended | |||||
Other | Primo | ||||
Change in revenue | $ 85.6 | $ (7.0) | $ 78.6 | ||
Impact of foreign exchange (a) | 2.4 | — | 2.4 | ||
Change excluding foreign exchange | $ 88.0 | $ (7.0) | $ 81.0 | ||
Percentage change in revenue | 5.1 % | (92.1) % | 4.6 % | ||
Percentage change in revenue excluding foreign exchange | 5.2 % | (92.1) % | 4.8 % | ||
For the Three Months Ended | |||||
Other | Primo | ||||
Change in gross profit | $ 35.2 | $ — | $ 35.2 | ||
Impact of foreign exchange (a) | 0.1 | — | 0.1 | ||
Change excluding foreign exchange | $ 35.3 | $ — | $ 35.3 | ||
Percentage change in gross profit | 14.2 % | — % | 14.2 % | ||
Percentage change in gross profit excluding foreign exchange | 14.2 % | — % | 14.2 % | ||
For the Fiscal Year Ended | |||||
Other | Primo | ||||
Change in gross profit | $ 122.9 | $ (5.1) | $ 117.8 | ||
Impact of foreign exchange (a) | 1.5 | — | 1.5 | ||
Change excluding foreign exchange | $ 124.4 | $ (5.1) | $ 119.3 | ||
Percentage change in gross profit | 12.1 % | (89.5) % | 11.6 % | ||
Percentage change in gross profit excluding foreign exchange | 12.3 % | (89.5) % | 11.7 % |
(a) Impact of foreign exchange is the difference between the current period revenue and gross profit translated utilizing the current period average foreign exchange rates less the current period revenue and gross profit translated utilizing the prior period average foreign exchange rates. |
EXHIBIT 6 | |||||||
SUPPLEMENTARY INFORMATION – NON-GAAP – EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION | |||||||
(EBITDA) | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Fiscal Year Ended | ||||||
Net income from continuing operations | $ 13.3 | $ 34.8 | $ 63.8 | $ 58.7 | |||
Interest expense, net | 16.6 | 18.2 | 71.4 | 67.8 | |||
Income tax expense | 6.0 | 9.5 | 27.0 | 19.5 | |||
Depreciation and amortization | 49.7 | 46.1 | 193.3 | 182.0 | |||
EBITDA | $ 85.6 | $ 108.6 | $ 355.5 | $ 328.0 | |||
Acquisition and integration costs (a) | 3.5 | 2.6 | 9.5 | 12.1 | |||
Share-based compensation costs (b) | 8.0 | 6.7 | 14.1 | 16.4 | |||
COVID-19 costs (c) | — | (0.6) | — | (0.6) | |||
Impairment charges (d) | — | — | — | 11.2 | |||
Foreign exchange and other losses (gains), net (e) | 5.8 | (0.9) | 5.7 | 0.9 | |||
Loss on disposal of property, plant and equipment, net (f) | 5.3 | 3.3 | 9.1 | 7.4 | |||
Gain on sale of business (g) | — | (0.3) | — | (0.7) | |||
Gain on sale of property (h) | (15.7) | (38.8) | (21.0) | (38.8) | |||
Other adjustments, net (i) | 2.4 | 8.0 | 7.8 | 7.9 | |||
Adjusted EBITDA | $ 94.9 | $ 88.6 | $ 380.7 | $ 343.8 | |||
Revenue, net | $ 438.7 | $ 405.1 | $ 1,771.8 | $ 1,693.2 | |||
Adjusted EBITDA margin % | 21.6 % | 21.9 % | 21.5 % | 20.3 % |
For the Three Months Ended | For the Fiscal Year Ended | ||||||||
Location in Consolidated Statements of |
|
|
|
| |||||
(Unaudited) | (Unaudited) | ||||||||
(a) Acquisition and integration costs | Acquisition and integration expenses | $ 3.5 | $ 2.6 | $ 9.5 | $ 12.1 | ||||
(b) Share-based compensation costs | Selling, general and administrative expenses | 8.0 | 6.7 | 14.1 | 16.4 | ||||
(c) COVID-19 costs | Selling, general and administrative expenses | — | (0.6) | — | (0.6) | ||||
(d) Impairment charges | Impairment charges | — | — | — | 11.2 | ||||
(e) Foreign exchange and other losses (gains), net | Other expense (income), net | 5.8 | (0.9) | 5.7 | 0.9 | ||||
(f) Loss on disposal of property, plant and | Loss on disposal of property, plant and | 5.3 | 3.3 | 9.1 | 7.4 | ||||
(g) Gain on sale of business | Other expense (income), net | — | (0.3) | — | (0.7) | ||||
(h) Gain on sale of property | Gain on sale of property | (15.7) | (38.8) | (21.0) | (38.8) | ||||
(i) Other adjustments, net | Other expense (income), net | (0.9) | (0.2) | (2.3) | (1.4) | ||||
Selling, general and administrative expenses | 3.3 | 8.2 | 10.1 | 9.3 |
EXHIBIT 7 | |||
SUPPLEMENTARY INFORMATION – NON-GAAP – FREE CASH FLOW AND ADJUSTED FREE CASH FLOW | |||
(in millions of | |||
Unaudited | |||
For the Three Months Ended | |||
Net cash provided by operating activities from continuing operations | $ 67.0 | $ 66.4 | |
Less: Additions to property, plant, and equipment | (35.7) | (43.5) | |
Less: Additions to intangible assets | (2.0) | — | |
Free Cash Flow | $ 29.3 | $ 22.9 | |
Acquisition and integration cash costs | 1.4 | 1.3 | |
Cash taxes paid for property sales | 5.1 | — | |
COVID-19 related cash costs | — | (0.6) | |
Cash costs related to additions to property, plant and equipment for | 0.2 | 0.3 | |
Tariffs refunds related to property, plant, and equipment | 0.7 | — | |
Deferral of payroll tax related costs – government programs | — | 7.5 | |
Adjusted Free Cash Flow | $ 36.7 | $ 31.4 | |
For the Fiscal Year Ended | |||
Net cash provided by operating activities from continuing operations | $ 289.2 | $ 238.3 | |
Less: Additions to property, plant, and equipment | (139.2) | (162.1) | |
Less: Additions to intangible assets | (8.5) | (6.7) | |
Free Cash Flow | $ 141.5 | $ 69.5 | |
Acquisition and integration cash costs | 7.0 | 8.7 | |
Cash taxes paid for property sales | 5.9 | — | |
COVID-19 related cash costs | — | (0.6) | |
Cash costs related to additions to property, plant and equipment for | 0.3 | 0.3 | |
Tariffs refunds related to property, plant, and equipment | 3.1 | — | |
Deferral of payroll tax related costs – government programs | — | 7.5 | |
Adjusted Free Cash Flow | $ 157.8 | $ 85.4 |
EXHIBIT 8 | |||||||
SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Year Ended | ||||||
Net income from continuing operations (as | $ 13.3 | $ 34.8 | $ 63.8 | $ 58.7 | |||
Adjustments: | |||||||
Amortization expense of customer lists | 7.7 | 7.6 | 30.1 | 31.5 | |||
Acquisition and integration costs | 3.5 | 2.6 | 9.5 | 12.1 | |||
Share-based compensation costs | 8.0 | 6.7 | 14.1 | 16.4 | |||
COVID-19 costs | — | (0.6) | — | (0.6) | |||
Impairment charges | — | — | — | 11.2 | |||
Foreign exchange and other losses (gains), net | 5.8 | (0.9) | 5.7 | 0.9 | |||
Gain on sale of business | — | (0.3) | — | (0.7) | |||
Gain on sale of property | (15.7) | (38.8) | (21.0) | (38.8) | |||
Other adjustments, net | 2.4 | 8.0 | 7.8 | 7.9 | |||
Tax impact of adjustments (a) | (6.4) | 1.5 | (10.2) | (11.8) | |||
Adjusted net income from continuing operations | $ 18.6 | $ 20.6 | $ 99.8 | $ 86.8 | |||
Earnings Per Share (as reported) | |||||||
Net income from continuing operations | $ 13.3 | $ 34.8 | $ 63.8 | $ 58.7 | |||
Basic EPS | $ 0.08 | $ 0.22 | $ 0.40 | $ 0.36 | |||
Diluted EPS | $ 0.08 | $ 0.22 | $ 0.40 | $ 0.36 | |||
Weighted average common shares outstanding (in | |||||||
Basic | 159,471 | 159,857 | 159,452 | 160,763 | |||
Diluted | 160,523 | 161,061 | 160,619 | 161,885 | |||
Adjusted Earnings Per Share (Non-GAAP) | |||||||
Adjusted net income from continuing operations | $ 18.6 | $ 20.6 | $ 99.8 | $ 86.8 | |||
Adjusted diluted EPS (Non-GAAP) | $ 0.12 | $ 0.13 | $ 0.62 | $ 0.54 | |||
Diluted weighted average common shares outstanding | 160,523 | 161,061 | 160,619 | 161,885 |
(a) The tax effect for adjusted net income is based upon an analysis of the statutory tax treatment and the applicable tax rate for the jurisdiction in which the pre-tax adjusting items incurred and for which realization of the resulting tax benefit (if any) is expected. A reduced or 0% tax rate is applied to jurisdictions where we do not expect to realize a tax benefit due to a history of operating losses or other factors resulting in a valuation allowance related to deferred tax assets. | |||||||
(b) For the periods presented, the non-GAAP diluted weighted average common shares outstanding equaled the reported diluted weighted average common shares outstanding. |
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