Primo Water Corporation Announces First Quarter 2020 Results
May 07, 2020
Pure-play water strategy yields 13% consolidated revenue growth and 31% Adjusted EBITDA growth
(Unless stated otherwise, all first quarter 2020 comparisons are relative to the first quarter of 2019; all information is in
FIRST QUARTER 2020 HIGHLIGHTS – CONTINUING OPERATIONS
- Revenue increased 11% (increased by 13% excluding the impact of foreign exchange and the divested
Cott Beverages LLC business) to$474 million compared to$428 million . - Reported net loss and net loss per diluted share were
$27 million and$0.19 , respectively. Adjusted EBITDA increased 31% to$70 million . - On
February 28, 2020 , the Company completed the sale of the S&D Coffee and Tea business for$405 million . The S&D Coffee and Tea business has been classified in the Company’s consolidated financial statements as discontinued operations for all periods presented. - On
March 2, 2020 , utilizing a combination of cash on hand, the proceeds of the S&D Coffee and Tea sale and Company common shares, the Company acquired legacyPrimo Water Corporation (“Legacy Primo”), a leading provider of water dispensers, purified bottled water, and self-service refill drinking water inthe United States andCanada . The transaction valued Legacy Primo at approximately$775 million . As a part of the transaction, the Company changed its name toPrimo Water Corporation and its common shares began trading under the ticker “PRMW” on the NYSE and the TSX. - The Company returned approximately
$42 million to shareowners through$10 million in quarterly dividends and$32 million of share repurchases.
“Our first quarter results are a testament to our pure-play water model and the strong underlying fundamentals of our business. I am pleased with the revenue growth we realized as a result of the increased demand for water products and services across our
FIRST QUARTER 2020 PERFORMANCE – CONTINUING OPERATIONS
- Revenue increased 11% to
$474 million (increased by 13% excluding the impact of foreign exchange and the divestedCott Beverages LLC business). Revenue growth by channel in the quarter is tabulated below:
Continuing Operations | |||
Change% | |||
2019 Q1 Revenue | $ 427.7 | ||
-7.2 | |||
2019 Q1 adjusted revenue | |||
Water Direct / Water Exchange | +31.4 | ||
Water Refill / Water Filtration | +15.6 | ||
Other Water Retail | +3.9 | ||
Water Dispensers | +5.9 | ||
Other | -2.9 | ||
Change before adjustments | +53.9 | 12.8% | |
Foreign exchange | -0.2 | ||
2020 Q1 Revenue |
Water Direct / Water Exchange
- Our Water Direct / Water Exchange businesses include our market leading Water Direct to consumer and direct to customer delivery business focused on large format returnable bottles in
North America and 19 other countries as well as our market leading Water Exchange program where consumers can exchange their empty bottle for a pre-filled 3- or 5-gallon bottle of purified water at approximately 14,000 locations acrossthe United States andCanada in leading retailers. Both services share the same logistics channels, fleet and infrastructure. - Water Direct / Water Exchange revenue increased 12% to
$295 million driven by Water Direct’s net customer growth, improved volume, favorable pricing and the benefit of acquisitions. Water Exchange revenue increased over 92% on a pro forma basis in the month of March. Pro formaU.S. Water Exchange same store unit growth reached 61.5% in the month of March, selling 771,000 more units than the prior year. The key drivers of revenue growth are tabulated below:
Water Direct / Water Exchange | ||||
Change% | ||||
2019 Q1 Revenue | $ 264.2 | |||
Water Direct | +25.5 | |||
Customer Growth/Volume | +19.2 | |||
Price/Mix | +6.8 | |||
Other | -0.5 | |||
Water Exchange | +11.6 | |||
Interchannel elimination | -5.7 | |||
Change excluding foreign exchange impact | +31.4 | 11.9% | ||
Foreign exchange impact | -0.4 | |||
2020 Q1 Revenue | 11.7% |
Water Refill / Water Filtration
- Our Water Refill / Water Filtration businesses include our market leading Water Refill business, which incorporates a multi-step filtration process for consumers to refill their own empty bottle in multi-gallon formats for approximately
$0.35 cents per gallon. Our machines are placed at approximately 23,000 retail locations acrossthe United States andCanada . This channel also includes our Water Filtration business, a top five player, with approximately 200,000 customers or locations across our footprint. - Water Refill / Water Filtration revenue increased 101% driven primarily by the addition of the Water Refill business in the quarter, which had a pro forma 24% increase in dispensed water gallon growth in the month of March, as well as a pro forma 10% increase in dispensed water gallon growth during the quarter. Water Filtration revenue grew 6% during the quarter.
Other Water Retail
- Our Other Water Retail channel includes sales of our branded products to retail outlets such as our leading American premium spring water, Mountain Valley®, as well as our market leading Mey Eden™ brand in
Israel . In addition, this channel includes sales of one gallon, 2.5 gallon and other water products to retail channels throughoutNorth America . - Revenue increased 9% (increased by 8% excluding the impact of foreign exchange) driven by increased bottled water market growth as well as improved volumes.
Water Dispensers
- Our Water Dispensers business includes sales of a full lineup of innovative and stylish dispensers through major retailers and online at various price points. These dispenser sales act as our razor in our recurring razor razorblade revenue model (“
4Rs “) and help increase household penetration which then drive recurring purchases of our higher-margin water products. - Revenue increased 10% on a pro forma basis in March driven primarily by the timing of orders of our major retail partners while sell-through of 100,000 units were up 44%, driven by strong consumer demand.
Other
- Other includes non-core channels of products and services such as office coffee services as well as co-packed products, including micro ground coffee, hot chocolate, and other conglomerates.
- Revenue decreased 4% (decreased by 3% excluding the impact of foreign exchange) driven primarily by the pressure within our office coffee services business as a result of COVID-19.
- Gross profit increased 12% to
$273 million . Gross profit as a percentage of revenue was flat at 57.6% (See Exhibit 4 for more details by revenue channel).
Continuing Operations | |
2019 Q1 Gross Profit | $ 243.1 |
Water Direct / Water Exchange | +20.8 |
Water Refill / Water Filtration | +9.0 |
Other Water Retail | +1.6 |
Water Dispensers | +0.2 |
Other | -1.3 |
Foreign exchange | -0.1 |
2020 Q1 Gross Profit |
- SG&A increased to
$255 million compared to$236 million due primarily to the addition of the Legacy Primo business as well as increased selling and service costs associated with the increase in volumes. - Reported net loss and net loss per diluted share were
$27 million and$0.19 , respectively, compared to reported net loss and net loss per diluted share of$23 million and$0.17 , respectively, driven by higher acquisition and integration expenses as well as transaction costs from the Legacy Primo Acquisition. - Adjusted EBITDA increased 31% to
$70 million compared to$54 million driven primarily by growth in volumes from increased water solutions services and products withinthe United States , improved operating leverage and the benefit of the Legacy Primo acquisition. - Net cash provided by operating activities of
$5 million , less$35 million of capital expenditures, resulted in($30) million of free cash flow, or($5) million of adjusted free cash flow (adjusting for the items set forth on Exhibit 7), compared to adjusted free cash flow of($3) million in the prior year.
2020 FIRST HALF REVENUE AND ADJUSTED EBITDA OUTLOOK
Primo is targeting first half 2020 consolidated revenue from continuing operations of approximately
“I could not be prouder of our associates and their efforts during this period of increased uncertainty,” commented
SHARE REPURCHASE PROGRAM
On
Primo repurchased approximately 2.3 million shares at an average price of
In addition, 0.5 million shares totaling approximately
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 to be purchased in future periods. Primo may discontinue purchases at any time, subject to compliance with applicable regulatory requirements. Shares purchased pursuant to the share repurchase program were subsequently cancelled.
FIRST QUARTER 2020 RESULTS CONFERENCE CALL
International: (647) 427-7450
Conference ID: 6669955
A slide presentation and live audio webcast will be available through Primo’s website at https://www.primowatercorp.com. The earnings conference call will be recorded and archived for playback on the investor relations section of the website for a period of two weeks following the event.
ABOUT
Primo’s water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the
Primo is a global company headquartered in
Non-GAAP Measures
To supplement its reporting of financial measures determined in accordance with GAAP, Primo utilizes certain non-GAAP financial measures. Primo excludes from GAAP revenue the impact of foreign exchange and the results of the divested
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 Primo makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this press release include, but are not limited to, statements related to future financial and operating trends and results (including Primo’s outlook on first half 2020 adjusted revenue and adjusted EBITDA) and related matters. The forward-looking statements are based on assumptions regarding management’s current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate.
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 the markets in which we operate; fluctuations in commodity prices and our ability to pass on increased costs to our customers or hedge against such rising costs and the impact of those increased prices on our volumes; our ability to manage our operations successfully; the impact of national, regional and global events, including those of a political, economic, business and competitive nature; the impact of the spread of COVID-19 on our business, financial condition and results of operations; our ability to fully realize the potential benefit of transactions (including the Primo and S&D transactions) or other strategic opportunities that we pursue; potential liabilities associated with our recent divestitures; our ability to realize the revenue and cost synergies of our acquisitions due to integration difficulties and other challenges; our limited indemnification rights in connection with the Primo acquisition; our exposure to intangible asset risk; currency fluctuations that adversely affect the exchange between 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 Primo’s Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. Primo does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law.
Website: www.primowatercorp.com
EXHIBIT 1 | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(in millions of | |||||
Unaudited | |||||
For the Three Months Ended | |||||
Revenue, net | $ | 474.2 | $ | 427.7 | |
Cost of sales | 200.9 | 184.6 | |||
Gross profit | 273.3 | 243.1 | |||
Selling, general and administrative expenses | 255.1 | 235.8 | |||
Loss on disposal of property, plant and equipment, net | 1.4 | 1.9 | |||
Acquisition and integration expenses | 20.8 | 4.7 | |||
Operating (loss) income | (4.0) | 0.7 | |||
Other expense, net | 7.0 | 5.5 | |||
Interest expense, net | 19.7 | 19.3 | |||
Loss from continuing operations before income taxes | (30.7) | (24.1) | |||
Income tax benefit | (3.3) | (1.4) | |||
Net loss from continuing operations | $ | (27.4) | $ | (22.7) | |
Net income from discontinued operations, net of income taxes | 30.9 | 3.0 | |||
Net income (loss) | $ | 3.5 | $ | (19.7) | |
Net income (loss) per common share | |||||
Basic: | |||||
Continuing operations | $ | (0.19) | $ | (0.17) | |
Discontinued operations | $ | 0.22 | $ | 0.03 | |
Net income (loss) | $ | 0.02 | $ | (0.14) | |
Diluted: | |||||
Continuing operations | $ | (0.19) | $ | (0.17) | |
Discontinued operations | $ | 0.22 | $ | 0.03 | |
Net income (loss) | $ | 0.02 | $ | (0.14) | |
Weighted average common shares outstanding (in thousands) | |||||
Basic | 141,139 | 135,948 | |||
Diluted | 141,139 | 135,948 |
EXHIBIT 2 | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(in millions of | |||||
Unaudited | |||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 112.2 | $ | 156.9 | |
Accounts receivable, net of allowance of | 282.7 | 216.7 | |||
Inventories | 75.3 | 62.9 | |||
Prepaid expenses and other current assets | 23.9 | 19.1 | |||
Current assets of discontinued operations | — | 186.7 | |||
Total current assets | 494.1 | 642.3 | |||
Property, plant and equipment, net | 688.7 | 558.1 | |||
Operating lease right-of-use-assets | 181.7 | 185.7 | |||
1,379.8 | 1,047.5 | ||||
Intangible assets, net | 947.5 | 597.0 | |||
Other long-term assets, net | 27.3 | 20.5 | |||
Long-term assets of discontinued operations | — | 339.8 | |||
Total assets | $ | 3,719.1 | $ | 3,390.9 | |
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Short-term borrowings | 127.4 | 92.4 | |||
Current maturities of long-term debt | 9.5 | 6.9 | |||
Accounts payable and accrued liabilities | 459.5 | 370.6 | |||
Current operating lease obligations | 37.5 | 36.5 | |||
Current liabilities of discontinued operations | — | 101.2 | |||
Total current liabilities | 633.9 | 607.6 | |||
Long-term debt | 1,270.9 | 1,259.1 | |||
Operating lease obligations | 150.2 | 155.2 | |||
Deferred tax liabilities | 124.8 | 90.6 | |||
Other long-term liabilities | 58.6 | 58.7 | |||
Long-term liabilities of discontinued operations | — | 53.5 | |||
Total liabilities | 2,238.4 | 2,224.7 | |||
Shareholders’ Equity | |||||
Common shares, no par value – 159,825,718 ( | 1,262.7 | 892.3 | |||
Additional paid-in-capital | 71.5 | 77.4 | |||
Retained earnings | 244.9 | 265.0 | |||
Accumulated other comprehensive loss | (98.4) | (68.5) | |||
Total shareholders’ equity | 1,480.7 | 1,166.2 | |||
Total liabilities and shareholders’ equity | $ | 3,719.1 | $ | 3,390.9 |
EXHIBIT 3 | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(in millions of | |||||
Unaudited | |||||
For the Three Months Ended | |||||
|
| ||||
Cash flows from operating activities of continuing operations: | |||||
Net income (loss) | $ | 3.5 | $ | (19.7) | |
Net income from discontinued operations, net of income taxes | 30.9 | 3.0 | |||
Net loss from continuing operations | $ | (27.4) | $ | (22.7) | |
Adjustments to reconcile net loss from continuing operations to cash flows from operating activities: | |||||
Depreciation and amortization | 45.0 | 39.7 | |||
Amortization of financing fees | 0.9 | 0.8 | |||
Share-based compensation expense | 2.4 | 3.3 | |||
Benefit for deferred income taxes | (3.5) | (5.2) | |||
Loss on sale of business | — | 5.4 | |||
Loss on disposal of property, plant and equipment, net | 1.4 | 1.9 | |||
Other non-cash items | 6.0 | 0.2 | |||
Change in operating assets and liabilities, net of acquisitions: | |||||
Accounts receivable | (28.9) | (1.3) | |||
Inventories | (0.6) | (2.8) | |||
Prepaid expenses and other current assets | (1.5) | (1.6) | |||
Other assets | 0.7 | 0.6 | |||
Accounts payable and accrued liabilities and other liabilities | 10.2 | (3.2) | |||
Net cash provided by operating activities from continuing operations | 4.7 | 15.1 | |||
Cash flows from investing activities of continuing operations: | |||||
Acquisitions, net of cash received | (422.6) | (3.7) | |||
Additions to property, plant and equipment | (34.9) | (22.0) | |||
Additions to intangible assets | (3.0) | (1.9) | |||
Proceeds from sale of property, plant and equipment | 0.3 | 1.1 | |||
Proceeds from sale of business, net of cash sold | — | 50.5 | |||
Net cash (used in) provided by investing activities from continuing operations | (460.2) | 24.0 | |||
Cash flows from financing activities of continuing operations: | |||||
Payments of long-term debt | (2.7) | (1.5) | |||
Proceeds from short-term borrowings | 135.9 | 25.0 | |||
Payments on short-term borrowings | (109.9) | (52.8) | |||
Issuance of common shares | 0.6 | 0.4 | |||
Common shares repurchased and canceled | (31.9) | (11.0) | |||
Financing fees | (2.5) | — | |||
Equity issuance fees | (1.1) | — | |||
Dividends paid to common shareholders | (9.8) | (8.2) | |||
Payment of deferred consideration for acquisitions | (0.2) | — | |||
Other financing activities | 8.8 | 1.4 | |||
Net cash used in financing activities from continuing operations | (12.8) | (46.7) | |||
Cash flows from discontinued operations: | |||||
Operating activities of discontinued operations | (17.3) | 8.5 | |||
Investing activities of discontinued operations | 394.5 | (19.1) | |||
Financing activities of discontinued operations | (0.1) | — | |||
Net cash provided by (used in) discontinued operations | 377.1 | (10.6) | |||
Effect of exchange rate changes on cash | (2.1) | 1.3 | |||
Net decrease in cash, cash equivalents and restricted cash | (93.3) | (16.9) | |||
Cash and cash equivalents and restricted cash, beginning of period | 205.5 | 170.8 | |||
Cash and cash equivalents and restricted cash, end of period | 112.2 | 153.9 | |||
Cash and cash equivalents and restricted cash from discontinued operations, end of period | — | 31.0 | |||
Cash and cash equivalents and restricted cash from continuing operations, end of period | $ | 112.2 | $ | 122.9 |
EXHIBIT 4 | |||||||
SEGMENT INFORMATION | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | |||||||
Revenue | |||||||
Water Direct/Water Exchange | $ | 295.2 | $ | 264.2 | |||
Water Refill/Water Filtration | 30.8 | 15.3 | |||||
Other Water Retail | 55.4 | 50.8 | |||||
Water Dispensers | 5.9 | — | |||||
Other | 86.9 | 90.2 | |||||
Water Solutions | $ | 474.2 | $ | 420.5 | |||
All Other | — | 7.2 | |||||
Total (a) | $ | 474.2 | $ | 427.7 | |||
Gross margin | |||||||
Water Direct/Water Exchange | 72.1 | % | 72.8 | % | |||
Water Refill/Water Filtration | 72.1 | % | 86.9 | % | |||
Other Water Retail | 14.6 | % | 12.0 | % | |||
Water Dispensers | 3.4 | % | — | % | |||
Other | 34.5 | % | 34.5 | % | |||
Water Solutions | 57.6 | % | 57.7 | % | |||
All Other | — | % | 4.2 | % | |||
Total | 57.6 | % | 56.8 | % | |||
Selling, general and administrative expenses | |||||||
Water Solutions | $ | 245.3 | $ | 224.5 | |||
All Other | 9.8 | 11.3 | |||||
Total | $ | 255.1 | $ | 235.8 | |||
Operating income (loss) | |||||||
Water Solutions | $ | 21.5 | $ | 14.0 | |||
All Other | (25.5) | (13.3) | |||||
Total | $ | (4.0) | $ | 0.7 | |||
Depreciation and Amortization | |||||||
Water Solutions | $ | 44.9 | $ | 39.6 | |||
All Other | 0.1 | 0.1 | |||||
Total | $ | 45.0 | $ | 39.7 | |||
(a) |
EXHIBIT 5 | |||||||||||
SUPPLEMENTARY INFORMATION – NON-GAAP – ANALYSIS OF REVENUE AND GROSS PROFIT BY | |||||||||||
(in millions of | |||||||||||
Unaudited | |||||||||||
For the Three Months Ended | |||||||||||
Water Solutions | All Other | Primo (a) | |||||||||
Change in revenue | $ | 53.7 | $ | (7.2) | $ | 46.5 | |||||
Impact of foreign exchange (b) | $ | 0.2 | $ | — | $ | 0.2 | |||||
Change excluding foreign exchange | $ | 53.9 | $ | (7.2) | $ | 46.7 | |||||
Percentage change in revenue | 12.8 | % | (100.0) | % | 10.9 | % | |||||
Percentage change in revenue excluding foreign exchange | 12.8 | % | (100.0) | % | 10.9 | % | |||||
For the Three Months Ended | |||||||||||
Water Solutions | All Other | Primo (a) | |||||||||
Change in gross profit | $ | 30.5 | $ | (0.3) | $ | 30.2 | |||||
Impact of foreign exchange (b) | $ | 0.1 | $ | — | $ | 0.1 | |||||
Change excluding foreign exchange | $ | 30.6 | $ | (0.3) | $ | 30.3 | |||||
Percentage change in gross profit | 12.6 | % | (100.0) | % | 12.4 | % | |||||
Percentage change in gross profit excluding foreign exchange | 12.6 | % | (100.0) | % | 12.5 | % | |||||
(a) | |||||||||||
(b) 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 | |||||
(EBITDA) | |||||
(in millions of | |||||
Unaudited | |||||
For the Three Months Ended | |||||
Net loss from continuing operations | $ | (27.4) | $ | (22.7) | |
Interest expense, net | 19.7 | 19.3 | |||
Income tax benefit | (3.3) | (1.4) | |||
Depreciation and amortization | 45.0 | 39.7 | |||
EBITDA | $ | 34.0 | $ | 34.9 | |
Acquisition and integration costs (a), (b) | 20.8 | 4.7 | |||
Share-based compensation costs (c) | 2.4 | 3.1 | |||
Foreign exchange and other losses, net (d) | 6.3 | 1.0 | |||
Loss on disposal of property, plant and equipment, net (e) | 1.4 | 1.9 | |||
Loss on sale of business (f) | — | 5.4 | |||
Other adjustments, net (g) | 5.5 | 2.7 | |||
Adjusted EBITDA | $ | 70.4 | $ | 53.7 | |
(a) Includes |
For the Three Months Ended | ||||||
Location in Consolidated Statements of Operations | ||||||
(Unaudited) | ||||||
(b) Acquisition and integration costs | Acquisition and integration expenses | $ | 20.8 | $ | 4.7 | |
(c) Share-based compensation costs | Selling, general and administrative expenses | 2.4 | 3.1 | |||
(d) Foreign exchange and other losses, net (d) | Other expense, net | 6.3 | 1.0 | |||
(e) Loss on disposal of property, plant and equipment, net | Loss on disposal of property, plant and equipment, net | 1.4 | 1.9 | |||
(f) Loss on sale of business | Other expense, net | — | 5.4 | |||
(g) Other adjustments, net | Other expense, net | 0.7 | (0.3) | |||
Selling, general and administrative expenses | 4.6 | 3.4 | ||||
Cost of sales | 0.2 | 6.8 | ||||
Revenue, net | — | (7.2) |
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 | $ | 4.7 | $ | 15.1 | |
Less: Additions to property, plant, and equipment | (34.9) | (22.0) | |||
Free Cash Flow | $ | (30.2) | $ | (6.9) | |
Plus: | |||||
Acquisition and integration cash costs | 12.0 | 4.2 | |||
Transaction cash costs paid on behalf of acquiree | 13.4 | — | |||
Adjusted Free Cash Flow | $ | (4.8) | $ | (2.7) |
EXHIBIT 8 | ||||||
SUPPLEMENTARY INFORMATION – NON-GAAP – ANALYSIS OF REVENUE | ||||||
(in millions of | ||||||
Unaudited | ||||||
Primo (a) | ||||||
For the Three Months Ended | ||||||
Revenue, net | $ | 474.2 | $ | 427.7 | ||
$ | — | $ | (7.2) | |||
Adjusted Revenue | $ | 474.2 | $ | 420.5 | ||
Change in adjusted revenue | $ | 53.7 | ||||
Percentage change in adjusted revenue | 12.8 | % | ||||
Impact of foreign exchange (b) | $ | 0.2 | ||||
Percentage change in adjusted revenue excluding foreign exchange impact | 12.8 | % | ||||
(a) | ||||||
(b) Impact of foreign exchange is the difference between the current period revenue translated utilizing the current period average foreign exchange rates less the current period revenue translated utilizing the prior period average foreign exchange rates. |
EXHIBIT 9 | ||||||||||
SUPPLEMENTARY INFORMATION – NON-GAAP | ||||||||||
(in millions of | ||||||||||
Unaudited | ||||||||||
For the Three Months Ended | ||||||||||
Primo | Divested Business (a) | Adjusted | ||||||||
Revenue, net | $ | 474.2 | $ | — | $ | 474.2 | ||||
Cost of sales | 200.9 | — | 200.9 | |||||||
Gross profit | 273.3 | — | 273.3 | |||||||
Gross margin % | 57.6 | % | 57.6 | % | ||||||
Selling, general and administrative expenses | 255.1 | — | 255.1 | |||||||
SG&A% of revenue | 53.8 | % | 53.8 | % | ||||||
Loss on disposal of property, plant and equipment, net | 1.4 | — | 1.4 | |||||||
Acquisition and integration expenses | 20.8 | — | 20.8 | |||||||
Operating loss | $ | (4.0) | $ | — | $ | (4.0) | ||||
Other expense, net | 7.0 | — | 7.0 | |||||||
Depreciation and Amortization | 45.0 | — | 45.0 | |||||||
EBITDA | 34.0 | — | 34.0 | |||||||
Adjustments | 36.4 | — | 36.4 | |||||||
Adjusted EBITDA | $ | 70.4 | $ | — | $ | 70.4 | ||||
For the Three Months Ended | ||||||||||
Primo | Divested Business (a) | Adjusted | ||||||||
Revenue, net | $ | 427.7 | $ | 7.2 | $ | 420.5 | ||||
Cost of sales | 184.6 | 6.9 | 177.7 | |||||||
Gross profit | 243.1 | 0.3 | 242.8 | |||||||
Gross margin % | 56.8 | % | 57.7 | % | ||||||
Selling, general and administrative expenses | 235.8 | 1.3 | 234.5 | |||||||
SG&A% of revenue | 55.1 | % | 55.8 | % | ||||||
Loss on disposal of property, plant and equipment, net | 1.9 | — | 1.9 | |||||||
Acquisition and integration expenses | 4.7 | — | 4.7 | |||||||
Operating income (loss) | $ | 0.7 | $ | (1.0) | $ | 1.7 | ||||
Other expense (income), net | 5.5 | (0.3) | 5.8 | |||||||
Depreciation and Amortization | 39.7 | 0.1 | 39.6 | |||||||
EBITDA | 34.9 | (0.6) | 35.5 | |||||||
Adjustments | 18.8 | 0.6 | 18.2 | |||||||
Adjusted EBITDA | $ | 53.7 | $ | — | $ | 53.7 | ||||
(a) |
EXHIBIT 10 | ||||||||
SUPPLEMENTARY INFORMATION – NON-GAAP – EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & | ||||||||
(in millions of | ||||||||
Unaudited | ||||||||
For the Three Months Ended | ||||||||
Water Solutions | All Other | Total | ||||||
Operating income (loss) | $ | 21.5 | $ | (25.5) | $ | (4.0) | ||
Other expense, net | 7.0 | — | 7.0 | |||||
Depreciation and amortization | 44.9 | 0.1 | 45.0 | |||||
EBITDA (a) | $ | 59.4 | $ | (25.4) | $ | 34.0 | ||
Acquisition and integration costs | 5.2 | 15.6 | 20.8 | |||||
Share-based compensation costs | 1.2 | 1.2 | 2.4 | |||||
Foreign exchange and other losses, net | 6.2 | 0.1 | 6.3 | |||||
Loss on disposal of property, plant and equipment, net | 1.4 | — | 1.4 | |||||
Other adjustments, net (b) | 4.4 | 1.1 | 5.5 | |||||
Adjusted EBITDA | $ | 77.8 | $ | (7.4) | $ | 70.4 | ||
For the Three Months Ended | ||||||||
Water Solutions | All Other | Total | ||||||
Operating income (loss) | $ | 14.0 | $ | (13.3) | $ | 0.7 | ||
Other (income) expense, net | (0.5) | 6.0 | 5.5 | |||||
Depreciation and amortization | 39.6 | 0.1 | 39.7 | |||||
EBITDA (a) | $ | 54.1 | $ | (19.2) | $ | 34.9 | ||
Acquisition and integration costs | 2.4 | 2.3 | 4.7 | |||||
Share-based compensation costs | 0.9 | 2.2 | 3.1 | |||||
Foreign exchange and other losses, net | 0.1 | 0.9 | 1.0 | |||||
Loss on disposal of property, plant and equipment, net | 1.9 | — | 1.9 | |||||
Loss on sale of business (c) | — | 5.4 | 5.4 | |||||
Other adjustments, net (d) | 0.6 | 2.1 | 2.7 | |||||
Adjusted EBITDA | $ | 60.0 | $ | (6.3) | $ | 53.7 | ||
(a) EBITDA by reporting segment is derived from operating income as operating income is the performance measure regularly reviewed by the chief operating decision maker when evaluating performance of our reportable segments. | ||||||||
(b) Impact of other adjustments, net for Water Solutions includes | ||||||||
(c) Loss on sale of the Cott Beverages LLC business, which was sold on | ||||||||
(d) Impact of other adjustments, net for Water Solutions is reflected under selling, general and administrative expenses in the Consolidated Statements of Operations. Impact of other adjustments, net for All Other includes |
LEGACY PRIMO | EXHIBIT 11 | |||||||
SUPPLEMENTARY INFORMATION – NON-GAAP – ANALYSIS OF PRO FORMA REVENUE | ||||||||
(in millions of | ||||||||
Unaudited | ||||||||
Legacy Primo (a) | ||||||||
For the Month Ended | ||||||||
Change | ||||||||
Water Exchange Revenue | $ | 12.9 | $ | 6.7 | 92.5 | % | ||
Water Dispensers Revenue | $ | 6.5 | $ | 5.9 | 10.2 | % | ||
(a) On |
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