Cott Reports Third Quarter 2014 Results and Declares Dividend as Diversification Strategy Continues to Stabilize Volumes
Oct 29, 2014
THIRD QUARTER 2014 HIGHLIGHTS
- Total volume was flat in servings (see “Defined Terms” for definition of servings). Excluding concentrate, volume was lower by 2% in servings.
- Revenue of
$535 million was lower by 1% compared to$543 million .
- Gross profit was
$64 million compared to$65 million in the prior year while gross profit as a percentage of revenue was 11.9% compared to 12.0%.
- Adjusted free cash flow was
$54 million excluding the$4 million in cash costs associated with the purchase of$79 million of its 8.125% senior notes due 2018 (the “2018 Notes”). Reported free cash flow was$50 million .
- Adjusted net income and adjusted earnings per diluted share were
$6 million and$0.07 , respectively, compared to adjusted net income of$14 million and adjusted earnings per diluted share of$0.14 in the prior year. Reported net income and earnings per diluted share were$0.4 million and nil, respectively.
- Consistent with
Cott’s recently announced strategic priorities designed to build long-term shareowner value:
- The North American Business Unit continued to expand its contract manufacturing business, growing by over 80% or 5 million serving equivalent cases, bringing the nine month year to date growth in contract manufacturing to over 18 million servings equivalent cases.
- Approximately
$10.2 million was returned to shareowners through the combination of our quarterly dividend of$0.06 per share (an approximate aggregate payment of$5.6 million ) and the repurchase of 640,000 shares for approximately$4.6 million under our share repurchase program.
- The North American Business Unit continued to expand its contract manufacturing business, growing by over 80% or 5 million serving equivalent cases, bringing the nine month year to date growth in contract manufacturing to over 18 million servings equivalent cases.
“Our global volume continued to stabilize in the quarter due to an 80% growth in North American contract manufacturing volumes, the addition of
THIRD QUARTER 2014 GLOBAL PERFORMANCE
- Total volume was flat in servings. Excluding concentrate volume, volume was lower by 2% in servings. Volume continued to stabilize in the quarter as growth in contract manufacturing, concentrate volume, the addition of
Aimia Foods volumes, and a slightly less aggressive large format retail National Brand pricing and promotional environment that started to emerge recently. These gains were largely offset by the decline in North American carbonated soft drink (“CSD”) volume as well as a generalU.K. market decline in the quarter resulting from a colder summer season when compared to the heat wave that occurred in the prior year.
- Revenue was lower by 1% (4% excluding the impact of foreign exchange) at
$535 million . The revenue decline was due primarily to a continued product mix shift into contract manufacturing (the revenue associated with contract manufacturing does not include a charge for ingredients and packaging as the customer typically provides these commodities and thus bears the risk of commodity cost increases), the competitive pricing environment and a generalU.K. market decline in the quarter resulting from a colder summer season when compared to the heat wave that occurred in the prior year.
- Gross profit was
$64 million compared to$65 million in the prior year, while gross profit as a percentage of revenue was 11.9% compared to 12.0%.
- Selling, general and administrative (“SG&A”) expenses of
$45 million were higher by$7 million compared to$38 million . This increase in SG&A expenses was due primarily to expenses associated with theAimia Foods business, lower employee-related incentive costs and the reversal of certain long term incentive accruals both in the prior year, and increased third party fees associated with acquisition activity and information technology implementations.
- Interest expense decreased by over 30% to
$9 million . The decline in interest expense was due primarily to reduced interest expense resulting from the redemption of our 8.375% senior notes due 2017.
- Other expense was
$5.4 million compared to other income of$0.7 million as a result of$4.6 million in costs associated with the redemption of$79 million of the 2018 Notes in the quarter as well as foreign exchange losses in the quarter versus foreign exchange gains in the prior year.
- Income tax expense was approximately
$1.8 million compared to$0.1 million .
- Adjusted EBITDA was
$46 million compared to$54 million . The reduction in Adjusted EBITDA was due predominantly from an increase in SG&A expenses. Reported EBITDA was$40 million compared to$52 million .
- Adjusted net income and adjusted earnings per diluted share were
$6 million and$0.07 , respectively, compared to adjusted net income of$14 million and adjusted earnings per diluted share of$0.14 in the prior year. Reported net income and earnings per diluted share were$0.4 million and nil, respectively, compared to reported net income and earnings per diluted share of$12 million and$0.13 , respectively, in the prior year.
- Adjusted free cash flow was
$54 million excluding the$4 million in cash costs associated with the purchase of$79 million of the 2018 Notes. Reported free cash flow was$50 million , reflecting$61 million of net cash provided by operating activities less$11 million of capital expenditures. Adjusted free cash flow was$27 million through the first nine months of the fiscal year compared to$18 million in the prior year. Reported free cash flow was$6 million through the first nine months of the fiscal year, reflecting$37 million of net cash provided by operating activities less$31 million of capital expenditures.
THIRD QUARTER 2014 REPORTING SEGMENT PERFORMANCE
North America volume decreased 3% in total servings. Excluding concentrate volume, volume was lower by 4% in servings. Revenue was lower by 10% (9% excluding the impact of foreign exchange) at$346 million due primarily to the continued competitive pricing environment and an overall product mix shift into contract manufacturing. Revenue associated with contract manufacturing typically does not include a charge for ingredients and packaging as the customer provides these commodities and thus bears the risk of commodity cost increases.
U.K. volume increased 2% in total servings. Excluding concentrate volume, volume increased 2% in servings. Revenue increased 20% (11% excluding the impact of foreign exchange) at$172 million due primarily to additional revenues from theAimia Foods business and a product mix shift in the coreU.K. business, offset in part by aU.K. market decline in the quarter resulting from a colder summer season when compared to the heat wave that occurred in the prior year.
- All Other revenue remained flat at
$17 million .Cott’s All Other reporting segment includesCott’s Mexico operating segment,Royal Crown International operating segment and other miscellaneous expenses (prior year information has been updated to reflect this change in reporting segments made in the fourth quarter of 2013).
DECLARATION OF DIVIDEND
Our Board of Directors has declared a dividend of
SHARE REPURCHASE PROGRAM
The share repurchase program authorizes the repurchase of up to 5% of
There can be no assurance as to the precise number of shares, if any, that will be repurchased under the share repurchase program in the future, or the aggregate dollar amount of the shares actually purchased.
THIRD QUARTER RESULTS CONFERENCE CALL
International: (201) 689-8031
A live audio webcast will be available through
ABOUT
Defined Terms
Certain defined terms used in this press release include the following. “GAAP” means U.S. generally accepted accounting principles. “Adjusted gross profit as a percentage of revenue” means GAAP gross profit excluding purchase accounting inventory step-up, divided by GAAP revenue. “Adjusted net income (loss)” means GAAP earnings (loss) excluding purchase accounting adjustments, integration expenses, restructuring expenses and bond redemption costs. “Adjusted earnings (loss) per diluted share” means adjusted net income (loss) divided by diluted weighted average outstanding shares. “EBITDA” means GAAP earnings (loss) before interest, taxes, depreciation and amortization. “Adjusted EBITDA” means GAAP earnings (loss) before interest, taxes, depreciation and amortization, excluding purchase accounting adjustments, integration expenses, restructuring expenses and bond redemption costs. “Adjusted SG&A” means GAAP selling, general and administrative expenses, excluding acquisition and integration costs. “Free cash flow” is GAAP net cash provided by operating activities excluding capital expenditures. “Adjusted free cash flow” is free cash flow excluding bond redemption cash costs. See the accompanying reconciliations of these non-GAAP measures to the corresponding GAAP measures, as well as the “Non-GAAP Measures” paragraph below.
With the acquisition of
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 with key customers, particularly Walmart; fluctuations in commodity prices and our ability to pass on increased costs to our customers, and the impact of those increased prices on our volumes; our ability to manage our operations successfully; our ability to fully realize the potential benefit of acquisitions or other strategic opportunities that we pursue; our ability realize the expected benefits of the
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 (in millions of U.S. dollars, except share and per share amounts, U.S. GAAP) Unaudited For the Three Months For the Nine Months Ended Ended -------------------- -------------------- September September September September 27, 2014 28, 2013 27, 2014 28, 2013 --------- --------- --------- --------- Revenue, net$ 535.0 $ 543.2 $ 1,561.0 $ 1,612.4 Cost of sales 471.5 478.2 1,373.4 1,414.4 --------- --------- --------- --------- Gross profit 63.5 65.0 187.6 198.0 Selling, general and administrative expenses 45.0 37.9 134.2 120.9 Loss on disposal of property, plant & equipment 0.7 1.1 1.2 1.4 Restructuring and asset impairments Restructuring 0.1 - 2.4 2.0 Asset impairments (0.2) - 1.7 - --------- --------- --------- --------- Operating income 17.9 26.0 48.1 73.7 Other expense (income), net 5.4 (0.7) 22.9 (0.4) Interest expense, net 9.0 13.3 27.2 39.4 --------- --------- --------- --------- Income (loss) before income taxes 3.5 13.4 (2.0) 34.7 Income tax expense 1.8 0.1 3.4 2.3 --------- --------- --------- --------- Net income (loss)$ 1.7 $ 13.3 $ (5.4) $ 32.4 Less: Net income attributable to non-controlling interests 1.3 1.3 4.1 3.9 --------- --------- --------- --------- Net income (loss) attributed to Cott Corporation$ 0.4 $ 12.0 $ (9.5) $ 28.5 ========= ========= ========= ========= Net income (loss) per common share attributed toCott Corporation Basic $ -$ 0.13 $ (0.10) $ 0.30 Diluted $ -$ 0.13 $ (0.10) $ 0.30 Weighted average outstanding shares (millions) attributed toCott Corporation Basic 93.6 94.2 94.1 94.9 Diluted 94.3 94.8 94.1 95.8 Dividends declared per share$ 0.06 $ 0.06 $ 0.18 $ 0.18 COTT CORPORATION EXHIBIT 2 CONSOLIDATED BALANCE SHEETS (in millions of U.S. dollars, except share amounts, U.S. GAAP) Unaudited -------------- -------------- September 27, December 28, 2014 2013 -------------- -------------- ASSETS Current assets Cash & cash equivalents $ 47.4 $ 47.2 Accounts receivable, net of allowance 250.2 204.4 Income taxes recoverable 1.0 1.1 Inventories 230.9 233.1 Prepaid expenses and other current assets 24.1 19.3 -------------- -------------- Total current assets 553.6 505.1 Property, plant & equipment, net 462.5 483.7 Goodwill 187.1 137.3 Intangibles and other assets, net 364.6 296.2 Deferred income taxes 5.4 3.6 Other tax receivable 0.3 0.2 -------------- -------------- Total assets$ 1,573.5 $ 1,426.1 ============== ============== LIABILITIES AND EQUITY Current liabilities Short-term borrowings $ 69.3 $ 50.8 Current maturities of long-term debt 4.1 3.9 Accounts payable and accrued liabilities 297.5 298.2 -------------- -------------- Total current liabilities 370.9 352.9 Long-term debt 535.5 403.5 Deferred income taxes 63.1 41.5 Other long-term liabilities 38.8 22.3 -------------- -------------- Total liabilities 1,008.3 820.2 Equity Capital stock, no par - 93,438,440 (December 28, 2013 - 94,238,190) shares issued 389.4 392.8 Additional paid-in-capital 47.9 44.1 Retained earnings 147.4 176.3 Accumulated other comprehensive loss (26.0) (16.8) -------------- -------------- Total Cott Corporation equity 558.7 596.4 Non-controlling interests 6.5 9.5 -------------- -------------- Total equity 565.2 605.9 -------------- -------------- Total liabilities and equity$ 1,573.5 $ 1,426.1 ============== ============== COTT CORPORATION EXHIBIT 3 CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of U.S. dollars) Unaudited For the Three Months For the Nine Months Ended Ended -------------------- -------------------- September September September September 27, 2014 28, 2013 27, 2014 28, 2013 --------- --------- --------- --------- Operating Activities Net income (loss)$ 1.7 $ 13.3 $ (5.4) $ 32.4 Depreciation & amortization 27.2 25.1 78.5 74.7 Amortization of financing fees 0.7 0.7 1.9 2.2 Share-based compensation expense 1.5 1.1 4.9 3.6 Increase in deferred income taxes 2.2 0.3 3.7 1.9 Write-off of financing fees and discount 0.8 - 4.1 - Loss on disposal of property, plant & equipment 0.7 1.1 1.2 1.4 Asset impairments (0.2) - 1.7 - Other non-cash items - - (0.7) 0.2 Change in operating assets and liabilities, net of acquisitions: Accounts receivable 27.2 19.0 (39.1) (38.8) Inventories 17.4 26.6 9.8 15.8 Prepaid expenses and other current assets (0.5) - (1.5) (2.0) Other assets - 6.1 (0.2) 6.0 Accounts payable and accrued liabilities, and other liabilities (17.5) (6.0) (20.2) (34.9) Income taxes recoverable (0.7) 0.1 (1.1) 0.4 --------- --------- --------- --------- Net cash provided by operating activities 60.5 87.4 37.6 62.9 --------- --------- --------- --------- Investing Activities Acquisitions, net of cash received - (4.7) (80.8) (11.2) Additions to property, plant & equipment (10.8) (10.2) (31.4) (44.7) Additions to intangibles and other assets (1.5) (2.1) (4.3) (4.0) Proceeds from sale of property, plant & equipment 1.6 0.2 1.6 0.2 Proceeds from insurance recoveries - - - 0.4 --------- --------- --------- --------- Net cash used in investing activities (10.7) (16.8) (114.9) (59.3) --------- --------- --------- --------- Financing Activities Payments of long-term debt (80.1) (0.6) (392.6) (20.2) Issuance of long-term debt - - 525.0 - Borrowings under ABL 191.1 - 474.3 - Payments under ABL (156.0) - (455.4) - Distributions to non- controlling interests (2.4) (2.2) (7.2) (5.0) Financing fees (1.2) (0.1) (9.1) (0.1) Common shares repurchased and cancelled (4.6) (4.5) (7.7) (12.9) Dividends to shareholders (5.6) (5.5) (16.4) (16.7) Payment of deferred consideration for acquisitions (32.4) - (32.4) - --------- --------- --------- --------- Net cash (used in) provided by financing activities (91.2) (12.9) 78.5 (54.9) --------- --------- --------- --------- Effect of exchange rate changes on cash (2.1) 1.3 (1.0) (2.3) --------- --------- --------- --------- Net (decrease) increase in cash & cash equivalents (43.5) 59.0 0.2 (53.6) Cash & cash equivalents, beginning of period 90.9 66.8 47.2 179.4 --------- --------- --------- --------- Cash & cash equivalents, end of period$ 47.4 $ 125.8 $ 47.4 $ 125.8 ========= ========= ========= ========= COTT CORPORATION EXHIBIT 4 SEGMENT INFORMATION (in millions of U.S. dollars, except percentage amounts, U.S. GAAP) Unaudited For the Three Months For the Nine Months Ended Ended --------------------- --------------------- September September September September 27, 2014 28, 2013 27, 2014 28, 2013 --------- --------- --------- --------- Revenue North America$ 346.2 $ 383.3 $ 1,064.4 $ 1,194.6 United Kingdom 172.0 142.9 446.7 368.2 All Other 16.8 17.0 49.9 49.6 --------- --------- --------- --------- Total$ 535.0 $ 543.2 $ 1,561.0 $ 1,612.4 ========= ========= ========= ========= Operating income (loss) North America$ 8.2 $ 17.6 $ 25.6 $ 58.1 United Kingdom 10.3 9.5 23.3 18.6 All Other 2.4 1.9 8.0 5.8 Corporate (3.0) (3.0) (8.8) (8.8) --------- --------- --------- --------- Total$ 17.9 $ 26.0 $ 48.1 $ 73.7 ========= ========= ========= ========= Change in servings - including concentrate North America (3.5)% (4.0)% United Kingdom 1.8% 4.4% All Other 7.2% 2.1% --------- --------- Total 0.2% (0.8)% ========= ========= Change in servings - excluding concentrate North America (3.6)% (5.4)% United Kingdom 2.4% 6.3% All Other (22.0)% 2.3% --------- --------- Total (2.4)% (1.9)% ========= ========= COTT CORPORATION EXHIBIT 5 SEGMENT INFORMATION BY PRODUCT CATEGORY For the Three Months Ended September 27, 2014 North United America Kingdom All Other Total ---------- ---------- ---------- ---------- Change in servings Carbonated soft drinks (8.2)% (2.1)% (20.0)% (6.9)% Juice and drinks 0.4% (12.0)% (50.0)% (1.0)% Concentrate (2.7)% (14.8)% 11.0% 7.2% Sparkling Waters/Mixers 1.2% (11.5)% 0.0% (2.2)% Energy 7.7% 4.1% 0.0% 4.0% All other products (1.8)% 14.5% (30.4)% 4.1% ---------- ---------- ---------- ---------- Total (3.5)% 1.8% 7.2% 0.2% ---------- ---------- ---------- ---------- For the Nine Months Ended September 27, 2014 North United America Kingdom All Other Total ---------- ---------- ---------- ---------- Change in servings Carbonated soft drinks (13.0)% 2.5% (50.8)% (10.4)% Juice and drinks 4.9% 47.9% 0.0% 7.2% Concentrate 6.5% (26.1)% 2.1% 1.9% Sparkling Waters/Mixers 2.9% (4.3)% (53.3)% (0.1)% Energy 5.4% (7.3)% 37.5% (0.7)% All other products (8.3)% 17.2% 44.4% 8.2% ---------- ---------- ---------- ---------- Total (4.0)% 4.4% 2.1% (0.8)% ---------- ---------- ---------- ---------- COTT CORPORATION EXHIBIT 6 SUPPLEMENTARY INFORMATION - NON-GAAP - Analysis of Revenue by Reporting Segment Unaudited For the Three Months Ended -------------------------------------------- (in millions of U.S. dollars, except percentage amounts) September 27, 2014 -------------------------------------------- North United Cott(1) America Kingdom All Other --------- --------- --------- --------- Change in revenue$ (8.2) $ (37.1) $ 29.1 $ (0.2) Impact of foreign exchange(2) (11.6) 1.7 (13.4) 0.1 --------- --------- --------- --------- Change excluding foreign exchange$ (19.8) $ (35.4) $ 15.7 $ (0.1) --------- --------- --------- --------- Percentage change in revenue (1.5)% (9.7)% 20.4% (1.2)% --------- --------- --------- --------- Percentage change in revenue excluding foreign exchange (3.6)% (9.2)% 11.0% (0.6)% --------- --------- --------- --------- For the Nine Months Ended -------------------------------------------- (in millions of U.S. dollars, except percentage amounts) September 27, 2014 -------------------------------------------- North United Cott(1) America Kingdom All Other --------- --------- --------- --------- Change in revenue$ (51.4) $ (130.2) $ 78.5 $ 0.3 Impact of foreign exchange(2) (25.5) 7.9 (34.0) 0.6 --------- --------- --------- --------- Change excluding foreign exchange$ (76.9) $ (122.3) $ 44.5 $ 0.9 --------- --------- --------- --------- Percentage change in revenue (3.2)% (10.9)% 21.3% 0.6% --------- --------- --------- --------- Percentage change in revenue excluding foreign exchange (4.8)% (10.2)% 12.1% 1.8% --------- --------- --------- --------- (1)Cott includes the following reporting segments:North America ,United Kingdom and All Other. (2) 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 - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION (EBITDA) (in millions of U.S. dollars) Unaudited For the Three Months For the Nine Months Ended Ended -------------------- -------------------- September September September September 27, 2014 28, 2013 27, 2014 28, 2013 --------- --------- --------- --------- Net income (loss) attributed to Cott Corporation$ 0.4 $ 12.0 $ (9.5) $ 28.5 Interest expense, net 9.0 13.3 27.2 39.4 Income tax expense 1.8 0.1 3.4 2.3 Depreciation & amortization 27.2 25.1 78.5 74.7 Net income attributable to non- controlling interests 1.3 1.3 4.1 3.9 --------- --------- --------- --------- EBITDA$ 39.7 $ 51.8 $ 103.7 $ 148.8 Restructuring and asset impairments (0.1) - 4.1 2.0 Bond redemption and other financing costs 4.7 - 25.2 - Tax reorganization and regulatory costs 0.8 0.5 1.1 0.5 Acquisition and integration costs, net 0.5 1.2 1.1 3.0 --------- --------- --------- --------- Adjusted EBITDA$ 45.6 $ 53.5 $ 135.2 $ 154.3 ========= ========= ========= ========= COTT CORPORATION EXHIBIT 8 SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW (in millions of U.S. dollars) Unaudited For the Three Months Ended ------------------------------ September 27, September 28, 2014 2013 -------------- -------------- Net cash provided by operating activities $ 60.5 $ 87.4 Less: Capital expenditures (10.8) (10.2) -------------- -------------- Free Cash Flow $ 49.7 $ 77.2 ============== ============== For the Nine Months Ended ------------------------------ September 27, September 28, 2014 2013 -------------- -------------- Net cash provided by operating activities $ 37.6 $ 62.9 Less: Capital expenditures (31.4) (44.7) -------------- -------------- Free Cash Flow $ 6.2 $ 18.2 ============== ============== For the Three Months Ended ------------------------------ September 27, September 28, 2014 2013 -------------- -------------- Free Cash Flow $ 49.7 $ 77.2 Plus: Bond redemption cash costs 3.8 - -------------- -------------- Adjusted Free Cash Flow $ 53.5 $ 77.2 ============== ============== For the Nine Months Ended ------------------------------ September 27, September 28, 2014 2013 -------------- -------------- Free Cash Flow $ 6.2 $ 18.2 Plus: Bond redemption cash costs 20.8 - -------------- -------------- Adjusted Free Cash Flow $ 27.0 $ 18.2 ============== ============== COTT CORPORATION EXHIBIT 9 SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED NET INCOME (in millions of U.S. dollars, except share and per share amounts) Unaudited For the Three For the Nine Months Months Ended Ended ------------------- -------------------- September September September September 27, 2014 28, 2013 27, 2014 28, 2013 --------- --------- --------- --------- Net income (loss) attributed to Cott Corporation$ 0.4 $ 12.0 $ (9.5) $ 28.5 Restructuring and asset impairments, net of tax - - 3.2 1.9 Bond redemption and other financing costs, net of tax 4.7 - 25.2 - Tax reorganization and regulatory costs, net of tax 0.8 0.5 1.1 0.5 Acquisition and integration costs, net of tax 0.5 1.0 0.4 2.6 --------- --------- --------- --------- Adjusted net income attributed to Cott Corporation$ 6.4 $ 13.5 $ 20.4 $ 33.5 ========= ========= ========= ========= Adjusted net income per common share attributed to Cott Corporation Basic$ 0.07 $ 0.14 $ 0.22 $ 0.35 Diluted$ 0.07 $ 0.14 $ 0.21 $ 0.35 Weighted average outstanding shares (millions) attributed toCott Corporation Basic 93.6 94.2 94.1 94.9 Diluted 94.3 94.8 95.1 95.8 COTT CORPORATION EXHIBIT 10 SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (in millions of U.S. dollars) Unaudited For the Three For the Nine Months Months Ended Ended ------------------- ------------------- September September September September 27, 2014 28, 2013 27, 2014 28, 2013 --------- --------- --------- --------- Selling, general and administrative expenses$ 45.0 $ 37.9 $ 134.2 $ 120.9 Less: Acquisition and integration costs 0.5 0.5 3.4 2.0 --------- --------- --------- --------- Adjusted selling, general and administrative expenses$ 44.5 $ 37.4 $ 130.8 $ 118.9 ========= ========= ========= ========= COTT CORPORATION EXHIBIT 11 SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED GROSS PROFIT (in millions of U.S. dollars) Unaudited For the Three For the Nine Months Months Ended Ended ------------------- ------------------- September September September September 27, 2014 28, 2013 27, 2014 28, 2013 --------- --------- --------- --------- Revenue, net$ 535.0 $ 543.2 $ 1,561.0 $ 1,612.4 Gross profit$ 63.5 $ 65.0 $ 187.6 $ 198.0 Plus: Inventory step-up - 0.7 1.2 1.0 --------- --------- --------- --------- Adjusted gross profit$ 63.5 $ 65.7 $ 188.8 $ 199.0 ========= ========= ========= ========= Adjusted gross profit as a percentage of revenue 11.9% 12.1% 12.1% 12.3%
CONTACT:Jarrod Langhans Investor Relations Tel: (813) 313-1732 Email Contact
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