PRIMO WATER CORPORATION ANNOUNCES THIRD QUARTER 2022 RESULTS, INCREASES 2022 FULL YEAR REVENUE GUIDANCE AND INCREASES 2024 EARNINGS TARGETS
Nov 10, 2022
Revenue growth of 17% in Water Direct & Water Exchange, 11% in Water Refill & Water Filtration, and 47% in Water Dispensers
(Unless stated otherwise, all third quarter 2022 comparisons are relative to the third quarter of 2021; all information is in
- Revenue increased 6% to
$585 million compared to$551 million (increased 10% excluding the impact of foreign exchange), driven by revenue growth of 17% in Water Direct / Water Exchange, 11% in Water Refill / Water Filtration, and 47% in Water Dispensers, partially offset by the exit from our North American single use bottled water retail business and foreign exchange headwinds. - Reported net income and net income per diluted share were
$1.3 million and$0.01 , respectively, compared to reported net income and net income per diluted share of$18 million and$0.11 , respectively. Adjusted net income and adjusted net income per diluted share were flat compared to the prior year, at$36 million and$0.22 , respectively. - Adjusted EBITDA increased 10% to
$117 million compared to$106 million and Adjusted EBITDA margin increased 80 bps to 20.0%. - The Company increases full year 2022 revenue target to between
$2,222 million to$2,242 million . Full year 2022 Adjusted EBITDA outlook remains between$415 million and$425 million . - The Company maintains 2024 outlook for high single-digit organic revenue growth and increases 2024 annualized Adjusted EBITDA to approximately
$530 million .
For the Three Months Ended | ||||||
(in millions of | Y/Y Change | |||||
Revenue, net | $ 584.6 | $ 550.8 | 6 % | |||
Net income | $ 1.3 | $ 18.1 | $ (16.8) | |||
Net income per diluted share | $ 0.01 | $ 0.11 | $ (0.10) | |||
Adjusted net income | $ 35.7 | $ 36.4 | $ (0.7) | |||
Adjusted net income per diluted share | $ 0.22 | $ 0.22 | $ – | |||
Adjusted EBITDA | $ 116.9 | $ 105.9 | 10 % | |||
Adjusted EBITDA margin % | 20.0 % | 19.2 % | 80bps |
“During the quarter we continued to execute our differentiated
“As a result, we are maintaining our 2024 outlook for high single-digit annual organic revenue growth and are increasing our 2024 annualized Adjusted EBITDA outlook to approximately
Primo is targeting the following results from continuing operations for the fourth quarter and full year 2022:
Q4 2022 | FY 2022 | ||||||||
Range | Range | ||||||||
($ in millions) | Low | High | Low | High | |||||
$ Revenue | |||||||||
Adjusted EBITDA | |||||||||
Cash Taxes | ~ | ||||||||
Interest | ~ | ||||||||
Cap-Ex | ~ |
1The exit from the single use bottled water retail business in |
Primo will host a conference call, to be simultaneously webcast, on
International: (416) 764-8659
Conference ID: 90921686
This is a live, listen-only dial-in telephone line.
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.
- Revenue increased 6% to
$585 million compared to$551 million (increased by 10% excluding the impact of foreign exchange). The increase was driven by revenue growth of 17% in Water Direct / Water Exchange, 11% in Water Refill / Water Filtration, and 47% in Water Dispensers, partially offset by the exit from our North American single use bottled water retail business and foreign exchange headwinds. Revenue growth by channel is tabulated below:
For the Three Months Ended | ||||||||
(in millions of | Change | %Change | ||||||
Revenue, net | ||||||||
Water Direct/Water Exchange | $ 402.2 | $ 344.2 | $ 58.0 | 17 % | ||||
Water Refill/Water Filtration | 61.6 | 55.6 | 6.0 | 11 % | ||||
Other Water | 32.4 | 66.8 | (34.4) | -51 % | ||||
Water Dispensers | 23.7 | 16.1 | 7.6 | 47 % | ||||
Other | 64.7 | 68.1 | (3.4) | -5 % | ||||
Revenue, net as reported | $ 584.6 | $ 550.8 | $ 33.8 | 6 % | ||||
Foreign exchange impact | 19.1 | – | 19.1 | n/a | ||||
Revenue excluding foreign exchange impact | $ 603.7 | $ 550.8 | $ 52.9 | 10 % |
- Gross profit increased 13% to
$348 million compared to$308 million . Gross margin increased 400 bps to 60% compared to 56%, driven by price increases, volume growth in water direct and additional water exchange locations, partially offset by foreign exchange headwinds. - SG&A expenses increased 13% to
$297 million compared to$264 million . The increase was driven by higher route operations costs in labor, fuel and freight to support volume and revenue growth, in addition to higher unit prices due to inflation. - Reported net income and net income per diluted share were
$1.3 million and$0.01 , respectively, compared to reported net income and net income per diluted share of$18 million and$0.11 , respectively. Adjusted net income and adjusted net income per diluted share were flat compared to the prior year, at$36 million and$0.22 , respectively. - Adjusted EBITDA increased 10% to
$117 million compared to$106 million , driven primarily by price increases, resilient consumer demand across our customer base and effective expense management. Adjusted EBITDA margin increased to 20.0% for the quarter. - Net cash provided by operating activities of
$93 million , less$74 million of capital expenditures and additions to intangible assets, resulted in$19 million of free cash flow, or$21 million of adjusted free cash flow (adjusting for the items set forth on Exhibit 7), compared to adjusted free cash flow of$47 million in the prior year.
- Revenue increased 8% to
$447 million driven by revenue growth of 19% in Water Direct / Water Exchange, and 12% in Water Refill / Water Filtration driven by customer acquisitions and retention, partially offset by the exit from our single use bottled water retail business.
For the Three Months Ended | ||||||||
(in millions of | Change | %Change | ||||||
Revenue, net | ||||||||
Water Direct/Water Exchange | $ 334.1 | $ 281.9 | $ 52.2 | 19 % | ||||
Water Refill/Water Filtration | 52.6 | 47.0 | 5.6 | 12 % | ||||
Other Water | 9.6 | 42.6 | (33.0) | -77 % | ||||
Water Dispensers | 23.7 | 16.1 | 7.6 | 47 % | ||||
Other | 26.8 | 25.7 | 1.1 | 4 % | ||||
Revenue, net as reported | $ 446.8 | $ 413.3 | $ 33.5 | 8 % | ||||
Foreign exchange impact | 0.6 | – | 0.6 | n/a | ||||
Revenue excluding foreign exchange impact | $ 447.4 | $ 413.3 | $ 34.1 | 8 % |
- Revenue increased 6% to
$71 million (increased 24% excluding the impact of foreign exchange) driven by increased demand from residential and B2B customers and tuck-in acquisitions, partially offset by foreign exchange headwinds.
For the Three Months Ended | ||||||||
(in millions of | Change | %Change | ||||||
Revenue, net | ||||||||
Water Direct/Water Exchange | $ 55.6 | $ 50.3 | $ 5.3 | 11 % | ||||
Water Refill/Water Filtration | 8.2 | 8.4 | (0.2) | -2 % | ||||
Other Water | 0.5 | 0.4 | 0.1 | 25 % | ||||
Water Dispensers | – | – | – | – | ||||
Other | 7.1 | 8.1 | (1.0) | -12 % | ||||
Revenue, net as reported | $ 71.4 | $ 67.2 | $ 4.2 | 6 % | ||||
Foreign exchange impact | 12.0 | – | 12.0 | n/a | ||||
Revenue excluding foreign exchange impact | $ 83.4 | $ 67.2 | $ 16.2 | 24 % |
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 headquartered in
To supplement its reporting of financial measures determined in accordance with
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 regarding future financial and operating trends and results (including Primo’s outlook on fourth quarter and full year 2022 revenue and Adjusted EBITDA and Primo’s multi-year growth algorithm), 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: financial condition and results of operations; Primo’s ability to compete successfully in the markets in which it operates; fluctuations in commodity prices and Primo’s ability to pass on increased costs to its customers or hedge against such rising costs, and the impact of those increased prices on its volumes; Primo’s ability to maintain favorable arrangements and relationships with its suppliers; Primo’s ability to manage supply chain disruptions and cost increases related to inflation; Primo’s ability to manage its operations successfully; currency fluctuations that adversely affect the exchange between currencies including 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 | For the Nine Months | ||||||||||
|
|
|
| ||||||||
Revenue, net | $ 584.6 | $ 550.8 | $ 1,682.1 | $ 1,555.3 | |||||||
Cost of sales | 236.4 | 242.4 | 702.0 | 685.2 | |||||||
Gross profit | 348.2 | 308.4 | 980.1 | 870.1 | |||||||
Selling, general and administrative expenses | 297.3 | 263.6 | 867.2 | 771.5 | |||||||
Loss on disposal of property, plant and equipment, net | 2.6 | — | 4.4 | 5.4 | |||||||
Acquisition and integration expenses | 3.3 | 2.6 | 12.5 | 6.3 | |||||||
Impairment charges | — | — | 29.1 | — | |||||||
Operating income | 45.0 | 42.2 | 66.9 | 86.9 | |||||||
Other expense, net | 21.2 | 4.3 | 34.6 | 29.5 | |||||||
Interest expense, net | 17.4 | 16.7 | 51.3 | 53.4 | |||||||
Income (loss) before income taxes | 6.4 | 21.2 | (19.0) | 4.0 | |||||||
Income tax expense | 5.1 | 3.1 | 8.9 | 4.4 | |||||||
Net income (loss) | $ 1.3 | $ 18.1 | $ (27.9) | $ (0.4) | |||||||
Net income (loss) per common share | |||||||||||
Basic | $ 0.01 | $ 0.11 | $ (0.17) | $ — | |||||||
Diluted | $ 0.01 | $ 0.11 | $ (0.17) | $ — | |||||||
Weighted average common shares outstanding (in thousands) | |||||||||||
Basic | 161,117 | 160,481 | 161,064 | 160,892 | |||||||
Diluted | 161,988 | 161,932 | 161,064 | 160,892 | |||||||
EXHIBIT 2 | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(in millions of | |||||||||||
Unaudited | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ 95.5 | $ 128.4 | |||||||||
Accounts receivable, net of allowance of | 287.4 | 261.6 | |||||||||
Inventories | 113.5 | 94.6 | |||||||||
Prepaid expenses and other current assets | 47.4 | 25.2 | |||||||||
Total current assets | 543.8 | 509.8 | |||||||||
Property, plant and equipment, net | 693.5 | 718.1 | |||||||||
Operating lease right-of-use-assets | 178.9 | 177.4 | |||||||||
1,267.1 | 1,321.4 | ||||||||||
Intangible assets, net | 890.6 | 969.8 | |||||||||
Other long-term assets, net | 27.0 | 26.9 | |||||||||
Total assets | $ 3,600.9 | $ 3,723.4 | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings | $ 248.1 | $ 222.1 | |||||||||
Current maturities of long-term debt | 16.2 | 17.7 | |||||||||
Accounts payable and accrued liabilities | 425.3 | 437.7 | |||||||||
Current operating lease obligations | 30.5 | 32.3 | |||||||||
Total current liabilities | 720.1 | 709.8 | |||||||||
Long-term debt | 1,239.3 | 1,321.1 | |||||||||
Operating lease obligations | 152.7 | 148.7 | |||||||||
Deferred tax liabilities | 160.6 | 158.8 | |||||||||
Other long-term liabilities | 65.5 | 64.9 | |||||||||
Total liabilities | 2,338.2 | 2,403.3 | |||||||||
Shareholders’ Equity | |||||||||||
Common shares, no par value -160,435,322 ( | 1,286.6 | 1,286.9 | |||||||||
Additional paid-in-capital | 90.4 | 85.9 | |||||||||
(Accumulated deficit) retained earnings | (50.3) | 16.4 | |||||||||
Accumulated other comprehensive loss | (64.0) | (69.1) | |||||||||
Total shareholders’ equity | 1,262.7 | 1,320.1 | |||||||||
Total liabilities and shareholders’ equity | $ 3,600.9 | $ 3,723.4 | |||||||||
EXHIBIT 3 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ 1.3 | $ 18.1 | $ (27.9) | $ (0.4) | |||
Adjustments to reconcile net income (loss) to cash flows from operating activities of continuing operations: | |||||||
Depreciation and amortization | 59.6 | 53.3 | 181.0 | 158.4 | |||
Amortization of financing fees | 0.8 | 0.8 | 2.5 | 2.5 | |||
Share-based compensation expense | 3.2 | 3.8 | 10.7 | 10.0 | |||
Provision for deferred income taxes | 3.7 | 1.9 | 5.2 | 1.3 | |||
Gain on sale of business | — | — | (0.4) | — | |||
Loss on extinguishment of debt | — | — | — | 27.2 | |||
Impairment charges | — | — | 29.1 | — | |||
Loss on disposal of property, plant and equipment, net | 2.6 | — | 4.4 | 5.4 | |||
Other non-cash items | 21.9 | 3.9 | 35.0 | 2.9 | |||
Change in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (12.9) | (3.3) | (46.1) | (65.2) | |||
Inventories | (7.4) | (9.6) | (26.5) | (12.7) | |||
Prepaid expenses and other current assets | 4.3 | 3.6 | (0.9) | (0.6) | |||
Other assets | (0.2) | 0.1 | (0.2) | 0.4 | |||
Accounts payable and accrued liabilities and other liabilities | 15.8 | 10.8 | 17.1 | 42.5 | |||
Net cash provided by operating activities from continuing operations | 92.7 | 83.4 | 183.0 | 171.7 | |||
Cash flows from investing activities of continuing operations: | |||||||
Acquisitions, net of cash received | (5.3) | (12.9) | (12.7) | (13.2) | |||
Additions to property, plant and equipment | (70.0) | (37.5) | (155.2) | (99.3) | |||
Additions to intangible assets | (4.0) | (2.6) | (8.9) | (6.7) | |||
Proceeds from sale of property, plant and equipment | 0.6 | 0.7 | 1.6 | 1.4 | |||
Other investing activities | (2.1) | (1.2) | (1.7) | (1.2) | |||
Net cash used in investing activities from continuing operations | (80.8) | (53.5) | (176.9) | (119.0) | |||
Cash flows from financing activities of continuing operations: | |||||||
Payments of long-term debt | (4.2) | (3.5) | (13.9) | (760.5) | |||
Issuance of long-term debt | — | — | — | 750.0 | |||
Proceeds from short-term borrowings | 12.0 | 38.2 | 22.0 | 83.2 | |||
Payments on short-term borrowings | — | (18.0) | — | (28.0) | |||
Premiums and costs paid upon extinguishment of long-term debt | — | — | — | (20.6) | |||
Issuance of common shares | 0.5 | 3.4 | 2.1 | 19.1 | |||
Common shares repurchased and canceled | (11.0) | (29.3) | (13.0) | (45.6) | |||
Financing fees | — | — | — | (11.3) | |||
Dividends paid to common shareholders | (11.3) | (9.6) | (34.2) | (29.2) | |||
Payment of deferred consideration for acquisitions | (2.2) | — | (2.3) | (1.8) | |||
Other financing activities | 1.4 | 1.1 | 6.0 | 5.4 | |||
Net cash used in financing activities from continuing operations | (14.8) | (17.7) | (33.3) | (39.3) | |||
Cash flows from discontinued operations: | |||||||
Operating activities of discontinued operations | — | 0.1 | — | (1.7) | |||
Investing activities of discontinued operations | — | — | — | — | |||
Financing activities of discontinued operations | — | — | — | — | |||
Net cash provided by (used in) discontinued operations | — | 0.1 | — | (1.7) | |||
Effect of exchange rate changes on cash | (3.8) | (1.2) | (5.7) | (1.5) | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | (6.7) | 11.1 | (32.9) | 10.2 | |||
Cash and cash equivalents and restricted cash, beginning of period | 102.2 | 114.2 | 128.4 | 115.1 | |||
Cash and cash equivalents and restricted cash, end of period | $ 95.5 | $ 125.3 | $ 95.5 | $ 125.3 | |||
EXHIBIT 4 | ||||||||||
SEGMENT INFORMATION | ||||||||||
(in millions of | ||||||||||
Unaudited | ||||||||||
For the Three Months Ended | ||||||||||
Other | Eliminations | Total | ||||||||
Revenue, net | ||||||||||
Water Direct/Water Exchange | $ 334.1 | $ 55.6 | $ 12.5 | $ — | $ 402.2 | |||||
Water Refill/Water Filtration | 52.6 | 8.2 | 0.8 | — | 61.6 | |||||
Other Water | 9.6 | 0.5 | 22.3 | — | 32.4 | |||||
Water Dispensers | 23.7 | — | — | — | 23.7 | |||||
Other | 26.8 | 7.1 | 30.8 | — | 64.7 | |||||
Total | $ 446.8 | $ 71.4 | $ 66.4 | $ — | $ 584.6 | |||||
Gross profit | $ 272.5 | $ 48.6 | $ 27.1 | $ — | $ 348.2 | |||||
Gross margin % | 61.0 % | 68.1 % | 40.8 % | — % | 59.6 % | |||||
Selling, general and administrative expenses | $ 215.7 | $ 42.4 | $ 39.2 | $ — | $ 297.3 | |||||
SG&A % of revenue | 48.3 % | 59.4 % | 59.0 % | — % | 50.9 % | |||||
Operating income (loss) | $ 52.6 | $ 5.1 | $ (12.7) | $ — | $ 45.0 | |||||
Depreciation and amortization | $ 44.2 | $ 9.5 | $ 5.9 | $ — | $ 59.6 | |||||
For the Three Months Ended | ||||||||||
Other | Eliminations | Total | ||||||||
Revenue, net | ||||||||||
Water Direct/Water Exchange | $ 281.9 | $ 50.3 | $ 12.0 | $ — | $ 344.2 | |||||
Water Refill/Water Filtration | 47.0 | 8.4 | 0.2 | — | 55.6 | |||||
Other Water | 42.6 | 0.4 | 23.8 | — | 66.8 | |||||
Water Dispensers | 16.1 | — | — | — | 16.1 | |||||
Other | 25.7 | 8.1 | 34.4 | (0.1) | 68.1 | |||||
Total | $ 413.3 | $ 67.2 | $ 70.4 | $ (0.1) | $ 550.8 | |||||
Gross profit | $ 233.0 | $ 46.0 | $ 29.4 | $ — | $ 308.4 | |||||
Gross margin % | 56.4 % | 68.5 % | 41.8 % | — % | 56.0 % | |||||
Selling, general and administrative expenses | $ 183.6 | $ 44.0 | $ 36.0 | $ — | $ 263.6 | |||||
SG&A % of revenue | 44.4 % | 65.5 % | 51.1 % | — % | 47.9 % | |||||
Operating income (loss) | $ 48.6 | $ 1.6 | $ (8.0) | $ — | $ 42.2 | |||||
Depreciation and amortization | $ 37.8 | $ 9.8 | $ 5.7 | $ — | $ 53.3 |
For the Nine Months Ended | ||||||||||
Other | Eliminations | Total | ||||||||
Revenue, net | ||||||||||
Water Direct/Water Exchange | $ 933.5 | $ 157.5 | $ 35.0 | $ — | $ 1,126.0 | |||||
Water Refill/Water Filtration | 142.1 | 24.6 | 2.0 | — | 168.7 | |||||
Other Water | 65.8 | 1.3 | 59.8 | — | 126.9 | |||||
Water Dispensers | 56.4 | — | — | — | 56.4 | |||||
Other | 82.8 | 22.2 | 99.1 | — | 204.1 | |||||
Total | $ 1,280.6 | $ 205.6 | $ 195.9 | $ — | $ 1,682.1 | |||||
Gross profit | $ 764.9 | $ 139.2 | $ 76.0 | $ — | $ 980.1 | |||||
Gross Margin % | 59.7 % | 67.7 % | 38.8 % | — % | 58.3 % | |||||
Selling, general and administrative expenses | $ 624.0 | $ 134.5 | $ 108.7 | $ — | $ 867.2 | |||||
SG&A % of Revenue | 48.7 % | 65.4 % | 55.5 % | — % | 51.6 % | |||||
Operating income (loss) | $ 129.2 | $ (27.6) | $ (34.7) | $ — | $ 66.9 | |||||
Depreciation and amortization | $ 133.8 | $ 29.4 | $ 17.8 | $ — | $ 181.0 | |||||
For the Nine Months Ended | ||||||||||
Other | Eliminations | Total | ||||||||
Revenue, net | ||||||||||
Water Direct/Water Exchange | $ 785.6 | $ 138.3 | $ 30.9 | $ — | $ 954.8 | |||||
Water Refill/Water Filtration | 137.2 | 24.1 | 0.4 | — | 161.7 | |||||
Other Water | 125.7 | 1.0 | 61.0 | — | 187.7 | |||||
Water Dispensers | 48.7 | — | — | — | 48.7 | |||||
Other | 78.3 | 23.7 | 101.4 | (1.0) | 202.4 | |||||
Total | $ 1,175.5 | $ 187.1 | $ 193.7 | $ (1.0) | $ 1,555.3 | |||||
Gross profit | $ 663.1 | $ 128.2 | $ 78.8 | $ — | $ 870.1 | |||||
Gross Margin % | 56.4 % | 68.5 % | 40.7 % | — % | 55.9 % | |||||
Selling, general and administrative expenses | $ 540.0 | $ 131.1 | $ 100.4 | $ — | $ 771.5 | |||||
SG&A % of Revenue | 45.9 % | 70.1 % | 51.8 % | — % | 49.6 % | |||||
Operating income (loss) | $ 114.8 | $ (3.4) | $ (24.5) | $ — | $ 86.9 | |||||
Depreciation and amortization | $ 112.1 | $ 29.4 | $ 16.9 | $ — | $ 158.4 | |||||
EXHIBIT 5 | |||||||||||||||||
SUPPLEMENTARY INFORMATION – NON-GAAP – ANALYSIS OF REVENUE AND GROSS PROFIT BY REPORTING SEGMENT | |||||||||||||||||
(in millions of | |||||||||||||||||
Unaudited | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Other | Eliminations | Primo | |||||||||||||||
Change in revenue | $ 33.5 | $ 4.2 | $ (4.0) | $ 0.1 | $ 33.8 | ||||||||||||
Impact of foreign exchange (a) | $ 0.6 | $ 12.0 | $ 6.5 | $ — | $ 19.1 | ||||||||||||
Change excluding foreign exchange | $ 34.1 | $ 16.2 | $ 2.5 | $ 0.1 | $ 52.9 | ||||||||||||
Percentage change in revenue | 8.1 % | 6.3 % | (5.7) % | (100.0) % | 6.1 % | ||||||||||||
Percentage change in revenue excluding foreign exchange | 8.3 % | 24.1 % | 3.6 % | (100.0) % | 9.6 % | ||||||||||||
For the Nine Months Ended | |||||||||||||||||
Other | Eliminations | Primo | |||||||||||||||
Change in revenue | $ 105.1 | $ 18.5 | $ 2.2 | $ 1.0 | $ 126.8 | ||||||||||||
Impact of foreign exchange (a) | $ 1.3 | $ 25.1 | $ 10.5 | $ — | $ 36.9 | ||||||||||||
Change excluding foreign exchange | $ 106.4 | $ 43.6 | $ 12.7 | $ 1.0 | $ 163.7 | ||||||||||||
Percentage change in revenue | 8.9 % | 9.9 % | 1.1 % | (100.0) % | 8.2 % | ||||||||||||
Percentage change in revenue excluding foreign exchange | 9.1 % | 23.3 % | 6.6 % | (100.0) % | 10.5 % | ||||||||||||
For the Three Months Ended | |||||||||||||||||
Other | Eliminations | Primo | |||||||||||||||
Change in gross profit | $ 39.5 | $ 2.6 | $ (2.3) | $ — | $ 39.8 | ||||||||||||
Impact of foreign exchange (a) | $ 0.4 | $ 8.2 | $ 1.7 | $ — | $ 10.3 | ||||||||||||
Change excluding foreign exchange | $ 39.9 | $ 10.8 | $ (0.6) | $ — | $ 50.1 | ||||||||||||
Percentage change in gross profit | 17.0 % | 5.7 % | (7.8) % | — % | 12.9 % | ||||||||||||
Percentage change in gross profit excluding foreign exchange | 17.1 % | 23.5 % | (2.0) % | — % | 16.2 % | ||||||||||||
For the Nine Months Ended | |||||||||||||||||
Other | Eliminations | Primo | |||||||||||||||
Change in gross profit | $ 101.8 | $ 11.0 | $ (2.8) | $ — | $ 110.0 | ||||||||||||
Impact of foreign exchange (a) | $ 0.8 | $ 17.4 | $ 1.9 | $ — | $ 20.1 | ||||||||||||
Change excluding foreign exchange | $ 102.6 | $ 28.4 | $ (0.9) | $ — | $ 130.1 | ||||||||||||
Percentage change in gross profit | 15.4 % | 8.6 % | (3.6) % | — % | 12.6 % | ||||||||||||
Percentage change in gross profit excluding foreign exchange | 15.5 % | 22.2 % | (1.1) % | — % | 15.0 % | ||||||||||||
(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 |
EXHIBIT 6 | ||||||||||||||||
SUPPLEMENTARY INFORMATION – NON-GAAP – EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION | ||||||||||||||||
(EBITDA) | ||||||||||||||||
(in millions of | ||||||||||||||||
Unaudited | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
Net income (loss) | $ 1.3 | $ 18.1 | $ (27.9) | $ (0.4) | ||||||||||||
Interest expense, net | 17.4 | 16.7 | 51.3 | 53.4 | ||||||||||||
Income tax expense | 5.1 | 3.1 | 8.9 | 4.4 | ||||||||||||
Depreciation and amortization | 59.6 | 53.3 | 181.0 | 158.4 | ||||||||||||
EBITDA | $ 83.4 | $ 91.2 | $ 213.3 | $ 215.8 | ||||||||||||
Acquisition and integration costs (a) | 3.3 | 2.6 | 12.5 | 6.3 | ||||||||||||
Share-based compensation costs (b) | 3.2 | 3.8 | 10.7 | 10.0 | ||||||||||||
COVID-19 costs (c) | — | 0.8 | — | 2.0 | ||||||||||||
Impairment charges (d) | — | — | 29.1 | — | ||||||||||||
Foreign exchange and other losses, net (e) | 21.3 | 5.7 | 36.7 | 4.6 | ||||||||||||
Loss on disposal of property, plant and equipment, net (f) | 2.6 | — | 4.4 | 5.4 | ||||||||||||
Loss on extinguishment of long-term debt (g) | — | — | — | 27.2 | ||||||||||||
Other adjustments, net (h) | 3.1 | 1.8 | 6.1 | 10.3 | ||||||||||||
Adjusted EBITDA | $ 116.9 | $ 105.9 | $ 312.8 | $ 281.6 | ||||||||||||
Revenue, net | $ 584.6 | $ 550.8 | $ 1,682.1 | $ 1,555.3 | ||||||||||||
Adjusted EBITDA margin % | 20.0 % | 19.2 % | 18.6 % | 18.1 % |
For the Three Months Ended | For the Nine Months Ended | |||||||
Location in Consolidated |
|
|
|
| ||||
(Unaudited) | (Unaudited) | |||||||
(a) Acquisition and integration costs | Acquisition and integration expenses | $ 3.3 | $ 2.6 | $ 12.5 | $ 6.3 | |||
(b) Share-based compensation costs | Selling, general and administrative expenses | 3.2 | 3.8 | 10.7 | 10.0 | |||
(c) COVID-19 costs | Selling, general and administrative expenses | — | 0.8 | — | 2.0 | |||
(d) Impairment charges | Impairment charges | — | — | 29.1 | — | |||
(e) Foreign exchange and other losses, net (e) | Other expense, net | 21.3 | 5.7 | 36.7 | 4.6 | |||
(f) Loss on disposal of property, plant and equipment, net | Loss on disposal of property, plant and equipment, net | 2.6 | — | 4.4 | 5.4 | |||
(g) Loss on extinguishment of long-term debt | Other expense, net | — | — | — | 27.2 | |||
(h) Other adjustments, net | Other expense, net | 0.1 | (0.9) | (1.6) | (1.4) | |||
Selling, general and administrative expenses | 3.0 | 2.7 | 7.7 | 11.7 |
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 | $ 92.7 | $ 83.4 | |||||||||
Less: Additions to property, plant, and equipment | (70.0) | (37.5) | |||||||||
Less: Additions to intangible assets (a) | (4.0) | (2.6) | |||||||||
Free Cash Flow | $ 18.7 | $ 43.3 | |||||||||
Acquisition and integration cash costs | 2.1 | 2.1 | |||||||||
COVID-19 related cash costs | — | 0.8 | |||||||||
Deferred payroll tax related cash costs – government programs | — | 0.3 | |||||||||
Adjusted Free Cash Flow | $ 20.8 | $ 46.5 | |||||||||
For the Nine Months Ended | |||||||||||
Net cash provided by operating activities from continuing operations | $ 183.0 | $ 171.7 | |||||||||
Less: Additions to property, plant, and equipment | (155.2) | (99.3) | |||||||||
Less: Additions to intangible assets (a) | (8.9) | (6.7) | |||||||||
Free Cash Flow | $ 18.9 | $ 65.7 | |||||||||
Acquisition and integration cash costs | 10.2 | 9.4 | |||||||||
COVID-19 related cash costs | — | 2.3 | |||||||||
Deferred payroll tax related cash costs – government programs | — | 1.2 | |||||||||
Adjusted Free Cash Flow | $ 29.1 | 78.6 |
a) Prior period has been recast to include additions to intangible assets |
| EXHIBIT 8 | ||||||||||
SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS | |||||||||||
(in millions of | |||||||||||
Unaudited | |||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||
Net income (loss) (as reported) | $ 1.3 | $ 18.1 | $ (27.9) | $ (0.4) | |||||||
Adjustments: | |||||||||||
Amortization expense of customer lists | 11.7 | 12.5 | 36.7 | 37.2 | |||||||
Acquisition and integration costs | 3.3 | 2.6 | 12.5 | 6.3 | |||||||
Share-based compensation costs | 3.2 | 3.8 | 10.7 | 10.0 | |||||||
COVID-19 costs | — | 0.8 | — | 2.0 | |||||||
Impairment charges | — | — | 29.1 | — | |||||||
Foreign exchange and other losses, net | 21.3 | 5.7 | 36.7 | 4.6 | |||||||
Loss on extinguishment of long-term debt | — | — | — | 27.2 | |||||||
Other adjustments, net | 3.1 | 1.8 | 6.1 | 10.3 | |||||||
Tax impact of adjustments (a) | (8.2) | (8.9) | (21.0) | (24.0) | |||||||
Adjusted net income | $ 35.7 | $ 36.4 | $ 82.9 | $ 73.2 | |||||||
Earnings Per Share (as reported) | |||||||||||
Net income (loss) | $ 1.3 | $ 18.1 | $ (27.9) | $ (0.4) | |||||||
Basic EPS | $ 0.01 | $ 0.11 | $ (0.17) | $ — | |||||||
Diluted EPS | $ 0.01 | $ 0.11 | $ (0.17) | $ — | |||||||
Weighted average common shares outstanding (in thousands) | |||||||||||
Basic | 161,117 | 160,481 | 161,064 | 160,892 | |||||||
Diluted | 161,988 | 161,932 | 161,064 | 160,892 | |||||||
Adjusted Earnings Per Share (Non-GAAP) | |||||||||||
Adjusted net income (Non-GAAP) | $ 35.7 | $ 36.4 | $ 82.9 | $ 73.2 | |||||||
Adjusted diluted EPS (Non-GAAP) | $ 0.22 | $ 0.22 | $ 0.51 | $ 0.45 | |||||||
Diluted weighted average common shares outstanding (in thousands) (Non-GAAP) (b) | 161,988 | 161,932 | 161,996 | 162,626 |
(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 | |||||||||||
(b) GAAP diluted weighted average common shares outstanding were used for the three months ended | |||||||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/primo-water-corporation-announces-third-quarter-2022-results-increases-2022-full-year-revenue-guidance-and-increases-2024-earnings-targets-301673546.html
SOURCE