Canada
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001-31410
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98-0154711
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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6525 Viscount Road
Mississauga, Ontario, Canada
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L4V1H6
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5519 West Idlewild Avenue
Tampa, Florida, United States
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33634
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant’s telephone number, including area code: |
(905) 672-1900
(813) 313-1800
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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Press Release of Cott Corporation, dated November 10, 2016
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Cott Corporation
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(Registrant) |
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November 10, 2016 |
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By:
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/s/ Marni Morgan Poe |
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Marni Morgan Poe
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Vice President, General Counsel and Secretary
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Exhibit No.
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Description
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Press Release of Cott Corporation, dated November 10, 2016
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Press Release
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· |
Cott completed the acquisitions of Eden Springs (“Eden”) and S&D Coffee and Tea (“S&D”) during the quarter, adding businesses with pro forma estimated 2016 revenues of approximately $950 million.
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· |
Cott revenue during the quarter was higher by 17% (20% on a foreign exchange neutral basis) at $885 million compared to $756 million.
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· |
Gross profit increased to $306 million compared to $233 million and gross margin as a percentage of revenue increased to 34.5% compared to 30.8%.
|
· |
Net cash provided by operating activities of $92 million less $39 million of capital expenditures resulted in free cash flow of $53 million, or $67 million on an adjusted basis when excluding $14 million of acquisition, integration and transaction related costs.
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- |
Revenue of $885 million was higher by 17% (20% on a foreign exchange neutral basis) primarily as a result of the additions of S&D and Eden, offset in part by the competitive landscape and mix shift within our traditional business.
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Press Release
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Revenue Bridge
|
|||||
2015 Q3 Revenue
|
$
|
755.6
|
|||
S&D |
|
87.3
|
|||
Eden
|
69.9
|
||||
Aquaterra
|
17.0
|
||||
Volume
|
1.8
|
||||
Energy surcharge
|
(1.0
|
)
|
|||
OCS/HOD PET/Retail
|
(6.7
|
)
|
|||
Price/Mix
|
(17.2
|
)
|
|||
Foreign exchange impact
|
(21.6
|
)
|
|||
2016 Q3 Revenue
|
$
|
885.1
|
- |
Gross profit increased 32% to $306 million, with gross margins of 34.5% compared to 30.8%, driven primarily by the additions of Eden and S&D as well as cost and efficiency initiatives within our traditional business, offset in part by the negative impact of foreign exchange rates and increased new customer costs and other operational costs at DS Services.
|
- |
Operating income increased 21% to $35 million. Excluding step up in inventory as well as acquisition, integration and transaction costs, adjusted operating income increased 27% to $48 million.
|
- |
Income tax expense was $6 million compared to income tax benefit of $6 million as we recorded $9 million of tax expense associated with placing a valuation allowance against our existing Canadian net operating loss carryovers and other tax assets as a result of the structuring of the Eden acquisition during the quarter. Cash taxes paid during the period were consistent with the prior year at less than $1 million.
|
- |
Reported net loss and net loss per diluted share were $4 million and $0.03, respectively, compared to reported net income and net income per diluted share of $5 million and $0.04, respectively. Adjusted net income and adjusted net income per diluted share (including adjustments for acquisition, integration and transaction costs as well as a tax valuation allowance) were $13 million and $0.09, respectively, compared to adjusted net income and adjusted net income per diluted share of $10 million and $0.09, respectively.
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- |
Reported EBITDA increased 17% to $101 million compared to $86 million in the prior year. Adjusted EBITDA increased 17% to $111 million including the partial quarter addition from Eden and S&D, offset in part by $3 million of incremental investment in home and office delivery (“HOD”) customer programs, $4 million from reduced sales at DS Services of case pack water, office coffee services and retail products, and $5 million of adverse foreign exchange.
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Press Release
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- |
Net cash provided by operating activities of $92 million, less $39 million of capital expenditures resulted in free cash flow of $53 million. On an adjusted basis, free cash flow was $67 million compared to $70 million as the additions of Eden and S&D were offset by increased capital expenditures and the impact of adverse foreign exchange rates.
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- |
Revenue of $437 million was higher by 63% driven primarily by the additions of Eden and S&D. Gross profit increased to $241 million from $164 million due primarily to the additions of Eden and S&D, offset by reduced sales at DS Services (excluding Aquaterra) and higher operational costs primarily associated with the DS Services higher level of customer growth.
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Water & Coffee Solutions
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|||||
Revenue Bridge
|
|||||
2015 Q3 Revenue
|
$
|
268.1
|
|||
S&D
|
|
87.3
|
|||
Eden
|
69.9
|
||||
DS Services
|
|||||
Aquaterra
|
17.0
|
||||
Returnable volume
|
2.8
|
||||
Energy surcharge
|
(1.0
|
)
|
|||
Other
|
(0.9
|
)
|
|||
OCS/HOD PET/Retail
|
(6.7
|
)
|
|||
2016 Q3 Revenue
|
$
|
436.5
|
o |
DS Services organic new customer additions increased approximately 20% in the United States compared to the third quarter of 2015 driving year to date net new organic additions to 68,000 compared to 7,000 in the prior year. DS Services revenue increased 4% to $279 million due primarily to the addition of the Aquaterra business. Excluding Aquaterra, revenue decreased 2% due primarily to organic customer growth in HOD water being offset by reduced sales in office coffee services, retail supermarkets, and HOD case pack water. DS Services gross profit increased to $171 million from $164 million as the addition of Aquaterra and volume growth in HOD water offset increased operational costs primarily associated with organic customer growth as well as reduced sales in office coffee services, retail supermarkets, and HOD case pack water.
|
Press Release
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|
o |
Cott acquired Eden on August 2, 2016 and, in line with expectations, $70 million of revenue and $45 million of gross profit was included in Cott’s third quarter consolidated financial results.
|
o |
Cott acquired S&D on August 11, 2016 and $87 million of revenue and $25 million of gross profit was included in Cott’s third quarter consolidated financial results. S&D is off to a good start winning a number of new customer contracts during the quarter for production starting at the end of 2016 and early 2017.
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- |
Cott North America reporting segment volume increased 2% in actual cases (down 4% in serving equivalent cases) due primarily to 19% growth in value added water products and 9% growth in contract manufacturing, offset by declines in carbonated soft drinks and shelf stable juices. Revenue was lower by 4% at $326 million due primarily to the ongoing product mix shifts into contract manufacturing (where the revenue per case is lower as the brand owner typically provides the majority of the ingredients and packaging materials).
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Cott North America Revenue Bridge
|
||||
2015 Q3 Revenue
|
$
|
338.5
|
||
Growth/Volume
|
7.4
|
|||
Foreign exchange impact
|
0.1
|
|||
Price/Mix
|
(19.8
|
)
|
||
2016 Q3 Revenue
|
$
|
326.2
|
Press Release
|
|
- |
Gross profit increased to $44 million or 13.7% of revenue compared to $43 million or 12.8% of revenue due primarily to our “War on Waste” program driving improved operational costs at certain plant locations.
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- |
Revenue decreased 17% (2% on a foreign exchange neutral basis) at $116 million due primarily to the post Brexit adverse foreign exchange impact on the British Pound.
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Cott U.K. Revenue Bridge
|
||||
2015 Q3 Revenue
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$
|
139.9
|
||
Price/Mix
|
4.2
|
|||
Volume/Other
|
(7.0
|
)
|
||
Foreign exchange impact
|
(21.0
|
)
|
||
2016 Q3 Revenue
|
$
|
116.1
|
- |
Gross profit as a percentage of revenue was slightly down at 14% as adverse foreign exchange and lower volumes were largely offset by growth at Aimia and tight cost controls.
|
Press Release
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Press Release
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Press Release
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Press Release
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Press Release
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COTT CORPORATION
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EXHIBIT 1
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|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||||||
(in millions of U.S. dollars, except share and per share amounts, U.S. GAAP)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
|
||||||||||||||||
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For the Three Months Ended
|
For the Nine Months Ended
|
||||||||||||||
|
October 1, 2016
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October 3, 2015
|
October 1, 2016
|
October 3, 2015
|
||||||||||||
|
||||||||||||||||
Revenue, net
|
$
|
885.1
|
$
|
755.6
|
$
|
2,348.5
|
$
|
2,245.2
|
||||||||
Cost of sales
|
579.3
|
523.1
|
1,576.1
|
1,570.8
|
||||||||||||
|
||||||||||||||||
Gross profit
|
305.8
|
232.5
|
772.4
|
674.4
|
||||||||||||
|
||||||||||||||||
Selling, general and administrative expenses
|
263.0
|
196.2
|
662.1
|
574.9
|
||||||||||||
Loss on disposal of property, plant & equipment, net
|
0.8
|
1.1
|
3.9
|
2.7
|
||||||||||||
Acquisition and integration expenses
|
7.4
|
6.6
|
20.5
|
15.4
|
||||||||||||
|
||||||||||||||||
Operating income
|
34.6
|
28.6
|
85.9
|
81.4
|
||||||||||||
|
||||||||||||||||
Other (income) expense, net
|
(3.2
|
)
|
0.6
|
(2.4
|
)
|
(8.8
|
)
|
|||||||||
Interest expense, net
|
34.4
|
27.4
|
89.2
|
83.0
|
||||||||||||
|
||||||||||||||||
Income (loss) before income taxes
|
3.4
|
0.6
|
(0.9
|
)
|
7.2
|
|||||||||||
|
||||||||||||||||
Income tax expense (benefit)
|
5.8
|
(5.8
|
)
|
(5.5
|
)
|
(16.3
|
)
|
|||||||||
|
||||||||||||||||
Net (loss) income
|
$
|
(2.4
|
)
|
$
|
6.4
|
$
|
4.6
|
$
|
23.5
|
|||||||
|
||||||||||||||||
Less: Net income attributable to non-controlling interests
|
1.5
|
1.6
|
4.4
|
4.6
|
||||||||||||
Less: Accumulated dividends on convertible preferred shares
|
-
|
-
|
-
|
4.5
|
||||||||||||
Less: Accumulated dividends on non-convertible preferred shares
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-
|
-
|
-
|
1.4
|
||||||||||||
Less: Foreign exchange impact on redemption of preferred shares
|
-
|
-
|
-
|
12.0
|
||||||||||||
Net (loss) income attributed to Cott Corporation
|
$
|
(3.9
|
)
|
$
|
4.8
|
$
|
0.2
|
$
|
1.0
|
|||||||
|
||||||||||||||||
Net (loss) income per common share attributed to Cott Corporation
|
||||||||||||||||
Basic
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
0.00
|
$
|
0.01
|
|||||||
Diluted
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
0.00
|
$
|
0.01
|
|||||||
|
||||||||||||||||
Weighted average common shares outstanding (in millions)
|
||||||||||||||||
Basic
|
138.2
|
109.7
|
124.9
|
100.8
|
||||||||||||
Diluted
|
138.2
|
110.4
|
126.0
|
101.4
|
||||||||||||
|
||||||||||||||||
Dividends declared per common share
|
$
|
0.06
|
$
|
0.06
|
$
|
0.18
|
$
|
0.18
|
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 2
|
|||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in millions of U.S. dollars, except share amounts, U.S. GAAP)
|
||||||||
Unaudited
|
||||||||
|
||||||||
|
||||||||
|
October 1, 2016
|
January 2, 2016
|
||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash & cash equivalents
|
$
|
118.9
|
$
|
77.1
|
||||
Accounts receivable, net of allowance
|
463.3
|
293.3
|
||||||
Income taxes recoverable
|
0.6
|
1.6
|
||||||
Inventories
|
320.1
|
249.4
|
||||||
Prepaid expenses and other current assets
|
33.9
|
17.2
|
||||||
|
||||||||
Total current assets
|
936.8
|
638.6
|
||||||
|
||||||||
Property, plant & equipment, net
|
951.4
|
769.8
|
||||||
Goodwill
|
1,186.7
|
759.6
|
||||||
Intangibles and other assets, net
|
1,019.9
|
711.7
|
||||||
Deferred tax assets
|
19.6
|
7.6
|
||||||
|
||||||||
Total assets
|
$
|
4,114.4
|
$
|
2,887.3
|
||||
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Short-term borrowings
|
$
|
264.1
|
$
|
122.0
|
||||
Current maturities of long-term debt
|
5.0
|
3.4
|
||||||
Accounts payable and accrued liabilities
|
598.7
|
437.6
|
||||||
|
||||||||
Total current liabilities
|
867.8
|
563.0
|
||||||
|
||||||||
Long-term debt
|
2,019.1
|
1,525.4
|
||||||
Deferred tax liabilities
|
169.4
|
76.5
|
||||||
Other long-term liabilities
|
81.8
|
76.5
|
||||||
|
||||||||
Total liabilities
|
3,138.1
|
2,241.4
|
||||||
|
||||||||
Equity
|
||||||||
Common shares, no par - 138,345,805 shares issued (January 2, 2016 - 109,695,435 shares issued)
|
907.4
|
534.7
|
||||||
Additional paid-in-capital
|
53.1
|
51.2
|
||||||
Retained earnings
|
106.7
|
129.6
|
||||||
Accumulated other comprehensive loss
|
(96.0
|
)
|
(76.2
|
)
|
||||
Total Cott Corporation equity
|
971.2
|
639.3
|
||||||
Non-controlling interests
|
5.1
|
6.6
|
||||||
|
||||||||
Total equity
|
976.3
|
645.9
|
||||||
|
||||||||
Total liabilities and equity
|
$
|
4,114.4
|
$
|
2,887.3
|
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 3
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
For the Three Months Ended
|
For the Nine Months Ended
|
||||||||||||||
|
October 1, 2016
|
October 3, 2015
|
October 1, 2016
|
October 3, 2015
|
||||||||||||
|
||||||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
(2.4
|
)
|
$
|
6.4
|
$
|
4.6
|
$
|
23.5
|
|||||||
Depreciation & amortization
|
63.2
|
58.1
|
169.2
|
173.7
|
||||||||||||
Amortization of financing fees
|
1.5
|
1.2
|
4.0
|
3.6
|
||||||||||||
Amortization of senior notes premium
|
(1.5
|
)
|
(1.3
|
)
|
(4.4
|
)
|
(4.2
|
)
|
||||||||
Share-based compensation expense
|
(0.5
|
)
|
2.3
|
5.7
|
8.4
|
|||||||||||
Benefit for deferred income taxes
|
5.4
|
(4.7
|
)
|
(7.5
|
)
|
(21.6
|
)
|
|||||||||
Loss on disposal of property, plant & equipment, net
|
0.8
|
1.1
|
3.9
|
2.7
|
||||||||||||
Other non-cash items
|
5.3
|
4.7
|
6.2
|
(11.8
|
)
|
|||||||||||
Change in operating assets and liabilities, net of acquisitions:
|
||||||||||||||||
Accounts receivable
|
25.1
|
37.8
|
(22.3
|
)
|
(22.9
|
)
|
||||||||||
Inventories
|
10.7
|
10.5
|
12.0
|
5.6
|
||||||||||||
Prepaid expenses and other current assets
|
0.6
|
2.9
|
(7.2
|
)
|
28.7
|
|||||||||||
Other assets
|
(5.5
|
)
|
(3.8
|
)
|
(4.3
|
)
|
(7.5
|
)
|
||||||||
Accounts payable and accrued liabilities, and other liabilities
|
(11.4
|
)
|
(24.3
|
)
|
3.2
|
(14.3
|
)
|
|||||||||
Income taxes recoverable
|
0.3
|
0.9
|
(2.6
|
)
|
2.5
|
|||||||||||
Net cash provided by operating activities
|
91.6
|
91.8
|
160.5
|
166.4
|
||||||||||||
|
||||||||||||||||
Investing Activities
|
||||||||||||||||
Acquisitions, net of cash received
|
(912.5
|
)
|
(22.0
|
)
|
(958.7
|
)
|
(22.5
|
)
|
||||||||
Additions to property, plant & equipment
|
(38.7
|
)
|
(28.3
|
)
|
(101.4
|
)
|
(85.5
|
)
|
||||||||
Additions to intangibles and other assets
|
(1.7
|
)
|
(0.5
|
)
|
(5.0
|
)
|
(2.7
|
)
|
||||||||
Proceeds from sale of property, plant & equipment and sale-leaseback
|
1.6
|
0.4
|
4.5
|
40.9
|
||||||||||||
Proceeds from insurance recoveries
|
1.4
|
-
|
1.4
|
-
|
||||||||||||
Increase in restricted cash
|
2.8
|
-
|
-
|
-
|
||||||||||||
Net cash used in investing activities
|
(947.1
|
)
|
(50.4
|
)
|
(1,059.2
|
)
|
(69.8
|
)
|
||||||||
|
||||||||||||||||
Financing Activities
|
||||||||||||||||
Payments of long-term debt
|
(1.8
|
)
|
(1.0
|
)
|
(3.3
|
)
|
(2.9
|
)
|
||||||||
Issuance of long-term debt
|
498.7
|
-
|
498.7
|
-
|
||||||||||||
Borrowings under ABL
|
814.5
|
52.4
|
1,435.6
|
801.3
|
||||||||||||
Payments under ABL
|
(550.6
|
)
|
(97.3
|
)
|
(1,296.6
|
)
|
(874.5
|
)
|
||||||||
Distributions to non-controlling interests
|
(2.7
|
)
|
(3.2
|
)
|
(6.0
|
)
|
(6.8
|
)
|
||||||||
Issuance of common shares
|
2.4
|
0.5
|
366.6
|
143.1
|
||||||||||||
Financing fees
|
(11.9
|
)
|
(0.1
|
)
|
(11.9
|
)
|
(0.3
|
)
|
||||||||
Preferred shares repurchased and cancelled
|
-
|
-
|
-
|
(148.8
|
)
|
|||||||||||
Common shares repurchased and cancelled
|
(3.4
|
)
|
(0.1
|
)
|
(4.5
|
)
|
(0.8
|
)
|
||||||||
Dividends to common and preferred shareholders
|
(8.4
|
)
|
(6.5
|
)
|
(23.1
|
)
|
(24.5
|
)
|
||||||||
Payment of deferred consideration for acquisitions
|
(10.8
|
)
|
-
|
(10.8
|
)
|
(2.5
|
)
|
|||||||||
Net cash provided by (used in) financing activities
|
726.0
|
(55.3
|
)
|
944.7
|
(116.7
|
)
|
||||||||||
|
||||||||||||||||
Effect of exchange rate changes on cash
|
(1.1
|
)
|
(1.4
|
)
|
(4.2
|
)
|
(2.4
|
)
|
||||||||
|
||||||||||||||||
Net (decrease) increase in cash & cash equivalents
|
(130.6
|
)
|
(15.3
|
)
|
41.8
|
(22.5
|
)
|
|||||||||
|
||||||||||||||||
Cash & cash equivalents, beginning of period
|
249.5
|
79.0
|
77.1
|
86.2
|
||||||||||||
|
||||||||||||||||
Cash & cash equivalents, end of period
|
$
|
118.9
|
$
|
63.7
|
$
|
118.9
|
$
|
63.7
|
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 4
|
|||||||||||||||||||||||||||
SEGMENT INFORMATION
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||||||
For the Three Months Ended October 1, 2016
|
||||||||||||||||||||||||||||
|
Water & |
|
Cott North
|
Cott
|
||||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
Coffee Solutions |
|
America |
|
U.K. |
|
All Other
|
|
Corporate |
|
Eliminations
|
|
Total | ||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
21.6
|
$
|
263.9
|
$
|
52.2
|
$
|
1.0
|
$
|
-
|
$
|
(0.4
|
)
|
$
|
338.3
|
|||||||||||||
Branded retail
|
21.3
|
25.4
|
32.9
|
0.7
|
-
|
(0.3
|
)
|
80.0
|
||||||||||||||||||||
Contract packaging
|
-
|
30.7
|
25.2
|
3.9
|
-
|
(1.9
|
)
|
57.9
|
||||||||||||||||||||
Home and office bottled water delivery
|
235.9
|
-
|
-
|
-
|
-
|
-
|
235.9
|
|||||||||||||||||||||
Coffee and Tea Services
|
110.9
|
-
|
2.0
|
-
|
-
|
-
|
112.9
|
|||||||||||||||||||||
Concentrate and other
|
46.8
|
6.2
|
3.8
|
6.3
|
-
|
(3.0
|
)
|
60.1
|
||||||||||||||||||||
Total
|
$
|
436.5
|
$
|
326.2
|
$
|
116.1
|
$
|
11.9
|
$
|
-
|
$
|
(5.6
|
)
|
$
|
885.1
|
|||||||||||||
Gross Profit
1
|
$
|
241.0
|
$
|
44.0
|
$
|
16.3
|
$
|
4.5
|
$
|
-
|
$
|
-
|
$
|
305.8
|
||||||||||||||
Gross Margin %
2
|
55.2
|
%
|
13.7
|
%
|
14.0
|
%
|
37.8
|
%
|
-
|
-
|
34.5
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
21.1
|
$
|
12.0
|
$
|
5.3
|
$
|
1.9
|
$
|
(5.7
|
)
|
$
|
-
|
$
|
34.6
|
|||||||||||||
|
||||||||||||||||||||||||||||
For the Three Months Ended October 3, 2015
|
||||||||||||||||||||||||||||
|
Water & |
|
Cott North |
|
Cott
|
|||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
Coffee Solution
|
|
America | U.K. | All Other | Corporate | Eliminations | Total | |||||||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
17.0
|
$
|
270.4
|
$
|
65.1
|
$
|
0.9
|
$
|
-
|
$
|
(0.4
|
)
|
$
|
353.0
|
|||||||||||||
Branded retail
|
22.9
|
30.0
|
41.6
|
0.9
|
-
|
(0.3
|
)
|
95.1
|
||||||||||||||||||||
Contract packaging
|
-
|
31.1
|
30.3
|
5.7
|
-
|
(2.4
|
)
|
64.7
|
||||||||||||||||||||
Home and office bottled water delivery
|
173.3
|
-
|
-
|
-
|
-
|
-
|
173.3
|
|||||||||||||||||||||
Coffee and Tea Services
|
28.1
|
-
|
0.8
|
-
|
-
|
-
|
28.9
|
|||||||||||||||||||||
Concentrate and other
|
26.8
|
7.0
|
2.1
|
7.9
|
-
|
(3.2
|
)
|
40.6
|
||||||||||||||||||||
Total
|
$
|
268.1
|
$
|
338.5
|
$
|
139.9
|
$
|
15.4
|
$
|
-
|
$
|
(6.3
|
)
|
$
|
755.6
|
|||||||||||||
Gross Profit
1
|
$
|
163.8
|
$
|
42.6
|
$
|
20.0
|
$
|
6.1
|
$
|
-
|
$
|
-
|
$
|
232.5
|
||||||||||||||
Gross Margin %
2
|
61.1
|
%
|
12.8
|
%
|
14.3
|
%
|
39.6
|
%
|
-
|
-
|
30.8
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
14.0
|
$
|
8.3
|
$
|
7.0
|
$
|
3.1
|
$
|
(3.8
|
)
|
$
|
-
|
$
|
28.6
|
|||||||||||||
|
||||||||||||||||||||||||||||
For the Nine Months Ended October 1, 2016
|
||||||||||||||||||||||||||||
|
|
Water &
|
|
Cott North
|
|
Cott
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
Coffee Solutions
|
America
|
|
U.K.
|
|
All Other
|
|
Corporate
|
|
Eliminations
|
|
Total
|
|||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
59.2
|
$
|
793.3
|
$
|
158.2
|
$
|
2.6
|
$
|
-
|
$
|
(1.1
|
)
|
$
|
1,012.2
|
|||||||||||||
Branded retail
|
68.5
|
77.0
|
111.2
|
2.5
|
-
|
(1.0
|
)
|
258.2
|
||||||||||||||||||||
Contract packaging
|
-
|
97.8
|
84.5
|
13.6
|
-
|
(6.5
|
)
|
189.4
|
||||||||||||||||||||
Home and office bottled water delivery
|
575.1
|
-
|
-
|
-
|
-
|
-
|
575.1
|
|||||||||||||||||||||
Coffee and Tea Services
|
172.4
|
-
|
2.0
|
-
|
-
|
-
|
174.4
|
|||||||||||||||||||||
Concentrate and other
|
94.3
|
20.6
|
13.1
|
21.6
|
-
|
(10.4
|
)
|
139.2
|
||||||||||||||||||||
Total
|
$
|
969.5
|
$
|
988.7
|
$
|
369.0
|
$
|
40.3
|
$
|
-
|
$
|
(19.0
|
)
|
$
|
2,348.5
|
|||||||||||||
Gross Profit
1
|
$
|
566.2
|
$
|
130.7
|
$
|
60.1
|
$
|
15.4
|
$
|
-
|
$
|
-
|
$
|
772.4
|
||||||||||||||
Gross Margin %
2
|
58.4
|
%
|
13.5
|
%
|
16.3
|
%
|
38.2
|
%
|
-
|
-
|
32.9
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
44.6
|
$
|
31.0
|
$
|
26.9
|
$
|
7.8
|
$
|
(24.4
|
)
|
$
|
-
|
$
|
85.9
|
|||||||||||||
|
||||||||||||||||||||||||||||
For the Nine Months Ended October 3, 2015
|
||||||||||||||||||||||||||||
|
|
Water &
|
|
Cott North
|
|
Cott
|
||||||||||||||||||||||
(in millions of U.S. dollars)
|
|
Coffee Solutions
|
|
America
|
|
U.K.
|
|
All Other
|
|
Corporate |
|
Eliminations
|
|
Total
|
||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
49.7
|
$
|
827.8
|
$
|
197.4
|
$
|
3.7
|
$
|
-
|
$
|
(1.6
|
)
|
$
|
1,077.0
|
|||||||||||||
Branded retail
|
63.2
|
87.9
|
130.0
|
3.3
|
-
|
(1.2
|
)
|
283.2
|
||||||||||||||||||||
Contract packaging
|
-
|
88.0
|
89.6
|
16.4
|
-
|
(4.0
|
)
|
190.0
|
||||||||||||||||||||
Home and office bottled water delivery
|
487.7
|
-
|
-
|
-
|
-
|
-
|
487.7
|
|||||||||||||||||||||
Coffee and Tea Services
|
89.8
|
-
|
2.4
|
-
|
-
|
-
|
92.2
|
|||||||||||||||||||||
Concentrate and other
|
75.0
|
22.5
|
6.5
|
21.4
|
-
|
(10.3
|
)
|
115.1
|
||||||||||||||||||||
Total
|
$
|
765.4
|
$
|
1,026.2
|
$
|
425.9
|
$
|
44.8
|
$
|
-
|
$
|
(17.1
|
)
|
$
|
2,245.2
|
|||||||||||||
Gross Profit
1
|
$
|
459.8
|
$
|
136.3
|
$
|
61.2
|
$
|
17.1
|
$
|
-
|
$
|
-
|
$
|
674.4
|
||||||||||||||
Gross Margin %
2
|
60.1
|
%
|
13.5
|
%
|
14.4
|
%
|
38.2
|
%
|
-
|
-
|
30.0
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
25.7
|
$
|
33.8
|
$
|
25.5
|
$
|
8.4
|
$
|
(12.0
|
)
|
$
|
-
|
$
|
81.4
|
1
Gross profit from external revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
Cott North America gross margin relative to external revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 5
|
|||||||||||||||||||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - Analysis of Revenue by Reporting Segment
|
||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
(in millions of U.S. dollars, except percentage amounts)
|
For the Three Months Ended October 1, 2016
|
|||||||||||||||||||||||
|
Water &
|
Cott North
|
||||||||||||||||||||||
|
Coffee Solutions
|
America
|
Cott U.K.
|
All Other
|
Elimination
|
Cott
1
|
||||||||||||||||||
Change in revenue
|
$
|
168.4
|
$
|
(12.3
|
)
|
$
|
(23.8
|
)
|
$
|
(3.5
|
)
|
$
|
0.7
|
$
|
129.5
|
|||||||||
Impact of foreign exchange
2
|
-
|
(0.1
|
)
|
21.0
|
0.7
|
-
|
21.6
|
|||||||||||||||||
Change excluding foreign exchange
|
$
|
168.4
|
$
|
(12.4
|
)
|
$
|
(2.8
|
)
|
$
|
(2.8
|
)
|
$
|
0.7
|
$
|
151.1
|
|||||||||
Percentage change in revenue
|
62.8
|
%
|
-3.6
|
%
|
-17.0
|
%
|
-22.7
|
%
|
-11.1
|
%
|
17.1
|
%
|
||||||||||||
Percentage change in revenue excluding foreign exchange
|
62.8
|
%
|
-3.7
|
%
|
-2.0
|
%
|
-18.2
|
%
|
-11.1
|
%
|
20.0
|
%
|
||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
(in millions of U.S. dollars, except percentage amounts)
|
For the Nine Months Ended October 1, 2016
|
|||||||||||||||||||||||
|
Water &
|
Cott North
|
||||||||||||||||||||||
|
Coffee Solutions
|
America
|
Cott U.K.
|
All Other
|
Elimination
|
Cott
1
|
||||||||||||||||||
Change in revenue
|
$
|
204.1
|
$
|
(37.5
|
)
|
$
|
(56.9
|
)
|
$
|
(4.5
|
)
|
$
|
(1.9
|
)
|
$
|
103.3
|
||||||||
Impact of foreign exchange
2
|
-
|
5.7
|
37.0
|
2.7
|
-
|
45.4
|
||||||||||||||||||
Change excluding foreign exchange
|
$
|
204.1
|
$
|
(31.8
|
)
|
$
|
(19.9
|
)
|
$
|
(1.8
|
)
|
$
|
(1.9
|
)
|
$
|
148.7
|
||||||||
Percentage change in revenue
|
26.7
|
%
|
-3.7
|
%
|
-13.4
|
%
|
-10.0
|
%
|
11.1
|
%
|
4.6
|
%
|
||||||||||||
Percentage change in revenue excluding foreign exchange
|
26.7
|
%
|
-3.1
|
%
|
-4.7
|
%
|
-4.0
|
%
|
11.1
|
%
|
6.6
|
%
|
1
Cott includes the following reporting segments: Water & Coffee Solutions, Cott North America, Cott U.K. and All Other.
|
|
|
||||
2
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.
|
||||||
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 6
|
|||||||||||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION
|
||||||||||||||||
(EBITDA)
|
||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
For the Three Months Ended
|
For the Nine Months Ended
|
||||||||||||||
|
October 1, 2016
|
October 3, 2015
|
October 1, 2016
|
October 3, 2015
|
||||||||||||
|
||||||||||||||||
Net (loss) income attributed to Cott Corporation
|
$
|
(3.9
|
)
|
$
|
4.8
|
$
|
0.2
|
$
|
1.0
|
|||||||
Interest expense, net
|
34.4
|
27.4
|
89.2
|
83.0
|
||||||||||||
Income tax expense (benefit)
|
5.8
|
(5.8
|
)
|
(5.5
|
)
|
(16.3
|
)
|
|||||||||
Depreciation & amortization
|
63.2
|
58.1
|
169.2
|
173.7
|
||||||||||||
Net income attributable to non-controlling interests
|
1.5
|
1.6
|
4.4
|
4.6
|
||||||||||||
Accumulated dividends on preferred shares
|
-
|
-
|
-
|
5.9
|
||||||||||||
Foreign exchange impact on redemption of preferred shares
|
-
|
-
|
-
|
12.0
|
||||||||||||
EBITDA
|
$
|
101.0
|
$
|
86.1
|
$
|
257.5
|
$
|
263.9
|
||||||||
|
||||||||||||||||
Acquisition and integration costs
|
7.4
|
6.6
|
20.5
|
15.4
|
||||||||||||
Purchase accounting adjustments
|
4.2
|
-
|
4.7
|
4.2
|
||||||||||||
Unrealized commodity hedging loss (gain), net
|
-
|
-
|
0.1
|
(1.2
|
)
|
|||||||||||
Foreign exchange and other gains, net
|
(1.4
|
)
|
(0.6
|
)
|
(1.8
|
)
|
(11.1
|
)
|
||||||||
Loss on disposal of property, plant & equipment, net
|
0.8
|
1.1
|
3.9
|
2.8
|
||||||||||||
Other adjustments
|
(1.2
|
)
|
1.3
|
1.7
|
2.5
|
|||||||||||
Adjusted EBITDA
|
$
|
110.8
|
$
|
94.5
|
$
|
286.6
|
$
|
276.5
|
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 7
|
|||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW
|
||||||||
(in millions of U.S. dollars)
|
||||||||
Unaudited
|
||||||||
|
||||||||
|
For the Three Months Ended
|
|||||||
|
October 1, 2016
|
October 3, 2015
|
||||||
|
||||||||
Net cash provided by operating activities
|
$
|
91.6
|
$
|
91.8
|
||||
Less: Additions to property, plant & equipment
|
(38.7
|
)
|
(28.3
|
)
|
||||
Free Cash Flow
|
$
|
52.9
|
$
|
63.5
|
||||
Plus:
|
||||||||
DSS integration capital expenditures
|
-
|
1.8
|
||||||
Acquisition and integration cash costs
|
14.1
|
4.3
|
||||||
Adjusted Free Cash Flow
|
$
|
67.0
|
$
|
69.6
|
||||
|
||||||||
|
||||||||
|
For the Nine Months Ended
|
|||||||
|
October 1, 2016
|
October 3, 2015
|
||||||
|
||||||||
Net cash provided by operating activities
|
$
|
160.5
|
$
|
166.4
|
||||
Less: Additions to property, plant & equipment
|
(101.4
|
)
|
(85.5
|
)
|
||||
Free Cash Flow
|
$
|
59.1
|
$
|
80.9
|
||||
Plus:
|
||||||||
DSS integration capital expenditures
|
-
|
1.8
|
||||||
Acquisition and integration cash costs
|
16.0
|
8.7
|
||||||
Less:
|
||||||||
Cash collateral
1
|
-
|
(29.4
|
)
|
|||||
Adjusted Free Cash Flow
|
$
|
75.1
|
$
|
62.0
|
1
In connection with the DSS Acquisition, $29.4 million of cash was required to collateralize certain DSS self-insurance programs. The $29.4 million was funded with borrowings under our ABL facility, and the cash collateral was included within prepaid and other current assets on our consolidated balance sheet at January 3, 2015. After January 3, 2015, additional letters of credit were issued from our available ABL facility capacity, and the cash collateral was returned to the Company and used to repay a portion of our outstanding ABL facility.
|
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 8
|
|||||||||||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED NET INCOME
|
||||||||||||||||
(in millions of U.S. dollars, except share and per share amounts)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
For the Three Months Ended
|
For the Nine Months Ended
|
||||||||||||||
|
October 1, 2016
|
October 3, 2015
|
October 1, 2016
|
October 3, 2015
|
||||||||||||
|
||||||||||||||||
Net (loss) income attributed to Cott Corporation
|
$
|
(3.9
|
)
|
$
|
4.8
|
$
|
0.2
|
$
|
1.0
|
|||||||
|
||||||||||||||||
Acquisition and integration costs
|
7.4
|
6.6
|
20.5
|
15.4
|
||||||||||||
Purchase accounting adjustments
|
4.2
|
-
|
4.7
|
4.2
|
||||||||||||
Unrealized commodity hedging loss (gain), net
|
-
|
-
|
0.1
|
(1.2
|
)
|
|||||||||||
Foreign exchange and other gains, net
|
(1.4
|
)
|
(0.6
|
)
|
(1.8
|
)
|
(11.1
|
)
|
||||||||
Foreign exchange impact on redemption of preferred shares
|
-
|
-
|
-
|
12.0
|
||||||||||||
Loss on disposal of property, plant & equipment, net
|
0.8
|
1.1
|
3.9
|
2.8
|
||||||||||||
Interest payment on 2024 Notes
1
|
2.4
|
-
|
2.4
|
-
|
||||||||||||
Tax valuation allowance
|
8.5
|
-
|
8.5
|
-
|
||||||||||||
Other adjustments
|
(1.2
|
)
|
1.3
|
1.7
|
2.5
|
|||||||||||
Adjustments for tax effect
2
|
(4.2
|
)
|
(3.1
|
)
|
(11.3
|
)
|
(5.6
|
)
|
||||||||
Adjusted net income attributed to Cott Corporation
|
$
|
12.6
|
$
|
10.1
|
$
|
28.9
|
$
|
20.0
|
||||||||
|
||||||||||||||||
Adjusted net income per common share attributed to Cott Corporation
|
||||||||||||||||
Basic
|
$
|
0.09
|
$
|
0.09
|
$
|
0.23
|
$
|
0.20
|
||||||||
Diluted
|
$
|
0.09
|
$
|
0.09
|
$
|
0.23
|
$
|
0.20
|
||||||||
|
||||||||||||||||
Weighted average common shares outstanding (in millions)
|
||||||||||||||||
Basic
|
138.2
|
109.7
|
124.9
|
100.8
|
||||||||||||
Diluted
|
139.3
|
110.4
|
126.0
|
101.4
|
1
Represents the interest paid on the 2024 Notes while the proceeds were held in escrow prior to funding a portion of the purchase price for the Eden Acquisition.
|
|||||||||
2
Reflects tax effect of adjustments at the statutory tax rate within the applicable tax jurisdiction.
|
|
|
|
|
|
||||
|
|
|
|
|
|
Press Release
|
|
COTT CORPORATION
|
EXHIBIT 9
|
|||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED OPERATING INCOME
|
||||||||
(in millions of U.S. dollars)
|
||||||||
Unaudited
|
||||||||
|
||||||||
|
||||||||
|
For the Three Months Ended
|
|||||||
|
October 1, 2016
|
October 3, 2015
|
||||||
|
||||||||
Operating income
|
$
|
34.6
|
$
|
28.6
|
||||
|
||||||||
Purchase accounting adjustments (cost of sales)
|
4.2
|
-
|
||||||
Acquisition and integration costs
|
7.4
|
6.6
|
||||||
Other adjustments (selling, general and administrative expenses)
|
0.5
|
1.2
|
||||||
Loss on disposal of property, plant & equipment, net
|
0.8
|
1.1
|
||||||
Adjusted operating income
|
$
|
47.5
|
$
|
37.5
|
Press Release
|
|
WATER & COFFEE SOLUTIONS REPORTING SEGMENT
|
EXHIBIT 10
|
|||||||||||||||
SUPPLEMENTARY INFORMATION
|
||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
|
||||||||||||||||
For the Three Months Ended October 1, 2016
|
||||||||||||||||
|
Water &
|
|||||||||||||||
|
DSS
|
Eden
|
S&D
|
|
Coffee Solutions
|
|||||||||||
Revenue, net
|
$
|
279.3
|
$
|
69.9
|
$
|
87.3
|
$
|
436.5
|
||||||||
|
||||||||||||||||
Gross profit
|
$
|
171.4
|
$
|
45.1
|
$
|
24.5
|
$
|
241.0
|