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:
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(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 August 4, 2016
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Cott Corporation
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(Registrant)
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August 4, 2016 | |
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By:
/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 August 4, 2016
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· | DS Services achieved a 36% increase in organic new customer additions in the United States. |
· | Cott North America actual case volume increased by 4% due primarily to 10% growth in the sparkling water and mixer category and 15% growth in contract manufacturing, offset in part by declines in carbonated soft drinks and shelf stable juices. |
· | Gross profit increased to $253 million and gross margin was 33.0% compared to gross profit of $241 million and gross margin of 30.9%. |
· | With the addition of Eden Springs, and following the S&D transaction, fiscal 2019 operating cash flow is projected to be approximately $395 to $435 million and capital expenditures are expected to be in the range of $160 to $170 million, resulting in adjusted free cash flow of approximately $225 to $275 million. |
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___________________________
Source: Mintel Group Ltd.
(1) Includes roasted, single-cup, instant, ready-to-drink and cold-brew, and refrigerated cold-brew / concentrate U.S. coffee retail sales at current prices; projections exclude refrigerated cold-brew / concentrate coffee retail sales. Excludes wholesale revenue.
(2) Includes canned / bottled, refrigerated, bagged / loose leaf, and single-cup U.S. tea sales at current prices. Excludes wholesale revenue.
|
· | Provide a growing, leading position in coffee, tea and liquid extracts in the United States; |
· | Continue Cott's shift to higher growth categories; |
· | Provide approximately $12 million of run-rate procurement cost, distribution and other synergies achieved over a four year period; |
· | Serve as a platform for smaller accretive acquisitions; |
· | Improve Cott's channel mix outside of large format retail and supermarket stores; |
· | Offer cross selling and vertical integration opportunities to leverage DS Services' and Cott's products; and |
· | Reduce customer concentration. |
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|
___________________________
Note: Financials based on FY 2015.
Terms: Home and Office Delivery ("HOD"), Office Coffee Services ("OCS") and Carbonated Soft Drinks ("CSD").
Other product category includes concentrates, Eden Springs's filtration services and other. Sparkling waters includes mixers
Other channels include contract packaging, OCS and other
Better For You platform includes HOD Water, Water, Coffee & Tea and Sparkling Waters / Mixers
Source: Company information, Management estimates
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|
|
___________________________
Note: Financials based on FY 2015
Terms: Home and Office Delivery ("HOD"), Office Coffee Services ("OCS") and Carbonated Soft Drinks ("CSD").
Other product category includes concentrates, Eden Springs's filtration services and other. Sparkling waters includes mixers
Other channels include contract packaging, OCS and other
Better For You platform includes HOD Water, Water, Coffee & Tea and Sparkling Waters / Mixers
Source: Company information, Management estimates
(1) 2015 Adjusted EBITDA allocated based upon pro-rata revenues by product category and channel between DS Services (HOD Water, OCS, Water and Other), Traditional Cott (CSD, Juice/Juice Drinks, Sparkling Waters and Other), Eden (HOD Water, OCS, Water and Other) and S&D (Coffee & Tea).
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- | Net cash provided by operating activities of $87 million less $33 million of capital expenditures resulted in free cash flow of $54 million, representing an $8 million, or 19%, improvement over the prior year comparable period. |
- | Revenue of $765 million was lower by 2% (broadly flat on a foreign exchange neutral basis) as a result of the mix shift from private label to contract manufacturing and the competitive landscape in our traditional business, offset by the growth of DS Services and the addition of the Aquaterra business. |
Revenue Bridge
|
||||
2015 Q2 Revenue
|
$
|
779.8
|
||
Aquaterra
|
16.8
|
|||
Growth/Volume
|
3.9
|
|||
Energy surcharge
|
(1.6
|
)
|
||
Foreign exchange impact
|
(12.6
|
)
|
||
Price/Mix
|
(21.3
|
)
|
||
2016 Q2 Revenue
|
$
|
765.0
|
- | Gross profit increased 5% to $253 million, with gross margin of 33.0% compared to 30.9%, driven primarily by the ongoing operational leverage at DS Services, the addition of the Aquaterra business, and cost and efficiency initiatives within our traditional business, offset in part by the negative impact of foreign exchange rates, increased operational costs and reduced U.K. volumes. |
- | Reported net income and net income per diluted share were $7 million and $0.06, respectively, compared to reported net income and net income per diluted share of $2 million and $0.02, respectively. Adjusted net income and adjusted net income per diluted share were $19 million and $0.15, respectively, compared to adjusted net income of $18 million and adjusted net income per diluted share of $0.18. |
- | Adjusted EBITDA of $105 million was lower by 3% (after investing $4 million behind home and office customer programs and $4 million of adverse foreign exchange impact) compared to $108 million. Reported EBITDA was $87 million compared to $103 million in the prior year driven primarily by financing and acquisition related costs associated with the acquisition of Eden Springs. |
- | DS Services achieved a 36% increase in organic new customer additions in the United States. Revenue increased 7% to $276 million due primarily to the addition of the Aquaterra business. Revenue on an energy surcharge neutral basis increased 8% (1% excluding Aquaterra as growth in home and office delivery water, single cup coffee delivery and retail sales was offset by reduced sales in traditional brew basket coffee). DS Services gross profit increased by 9% to $171 million while gross profit as a percentage of revenue increased to 62.0% from 60.7%. DS Services operating income increased to $18 million from $13 million. DS Services adjusted EBITDA increased to $50 million compared to $49 million, as DS Services growth and synergies were largely offset by $4 million of investment behind home and office customer programs. |
|
|
DS Services Revenue Bridge
|
||||
2015 Q2 Revenue
|
$
|
257.0
|
||
Aquaterra
|
16.8
|
|||
Growth
|
3.5
|
|||
Energy surcharge
|
(1.6
|
)
|
||
2016 Q2 Revenue
|
$
|
275.7
|
|
|
- | Cott North America volume increased 4% in actual cases due primarily to 10% growth in the sparkling water and mixer category and 15% growth in contract manufacturing, offset in part by declines in carbonated soft drinks and shelf stable juices. Servings decreased by 1% with 5% growth in the sparkling water and mixer category and 10% growth in contract manufacturing, offset by declines in private label carbonated soft drinks and shelf stable juices. Revenue was lower by 3% (lower by 2% on a foreign exchange neutral basis) at $349 million due primarily to an overall product mix shift into contract manufacturing. Gross profit as a percentage of revenue increased to 15.1% compared to 14.8% due primarily to operational leverage associated with increased volumes offset in part by the negative impact of foreign exchange rates and increased manufacturing costs. |
Cott North America Revenue Bridge
|
||||
2015 Q2 Revenue
|
$
|
359.0
|
||
Growth/Volume
|
12.3
|
|||
Foreign exchange impact
|
(2.5
|
)
|
||
Price/Mix
|
(19.6
|
)
|
||
2016 Q2 Revenue
|
$
|
349.2
|
- | U.K. volume decreased 12% in actual cases and 8% in servings. Revenue decreased 14% (8% on a foreign exchange neutral basis) to $132 million due primarily to the competitive landscape and adverse foreign exchange impact. Gross profit as a percentage of revenue increased to 18.2% from 16.6% due primarily to lower inventory levels and tighter cost controls. |
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COTT CORPORATION
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EXHIBIT 2
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|||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in millions of U.S. dollars, except share amounts, U.S. GAAP)
|
||||||||
Unaudited
|
||||||||
July 2, 2016
|
January 2, 2016
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash & cash equivalents
|
$
|
249.5
|
$
|
77.1
|
||||
Restricted cash
|
503.1
|
-
|
||||||
Accounts receivable, net of allowance
|
339.5
|
293.3
|
||||||
Income taxes recoverable
|
0.9
|
1.6
|
||||||
Inventories
|
247.1
|
249.4
|
||||||
Prepaid expenses and other current assets
|
24.1
|
17.2
|
||||||
Total current assets
|
1,364.2
|
638.6
|
||||||
Property, plant & equipment, net
|
770.2
|
769.8
|
||||||
Goodwill
|
777.4
|
759.6
|
||||||
Intangibles and other assets, net
|
690.4
|
711.7
|
||||||
Deferred tax assets
|
12.8
|
7.6
|
||||||
Total assets
|
$
|
3,615.0
|
$
|
2,887.3
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Short-term borrowings
|
$
|
-
|
$
|
122.0
|
||||
Current maturities of long-term debt
|
3.6
|
3.4
|
||||||
Accounts payable and accrued liabilities
|
468.0
|
437.6
|
||||||
Total current liabilities
|
471.6
|
563.0
|
||||||
Long-term debt
|
2,013.3
|
1,525.4
|
||||||
Deferred tax liabilities
|
63.7
|
76.5
|
||||||
Other long-term liabilities
|
72.5
|
76.5
|
||||||
Total liabilities
|
2,621.1
|
2,241.4
|
||||||
Equity
|
||||||||
Common shares, no par - 137,860,725 shares issued (January 2, 2016 - 109,695,435 shares issued)
|
904.9
|
534.7
|
||||||
Additional paid-in-capital
|
54.6
|
51.2
|
||||||
Retained earnings
|
119.0
|
129.6
|
||||||
Accumulated other comprehensive loss
|
(90.8
|
)
|
(76.2
|
)
|
||||
Total Cott Corporation equity
|
987.7
|
639.3
|
||||||
Non-controlling interests
|
6.2
|
6.6
|
||||||
Total equity
|
993.9
|
645.9
|
||||||
Total liabilities and equity
|
$
|
3,615.0
|
$
|
2,887.3
|
|
|
COTT CORPORATION
|
EXHIBIT 3
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
For the Three Months Ended
|
For the Six Months Ended
|
|||||||||||||||
July 2, 2016
|
July 4, 2015
|
July 2, 2016
|
July 4, 2015
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
8.9
|
$
|
18.3
|
$
|
7.0
|
$
|
17.1
|
||||||||
Depreciation & amortization
|
53.5
|
58.2
|
106.0
|
115.6
|
||||||||||||
Amortization of financing fees
|
1.3
|
1.1
|
2.5
|
2.4
|
||||||||||||
Amortization of senior notes premium
|
(1.5
|
)
|
(1.4
|
)
|
(2.9
|
)
|
(2.9
|
)
|
||||||||
Share-based compensation expense
|
3.8
|
3.7
|
6.2
|
6.1
|
||||||||||||
Benefit for deferred income taxes
|
(2.1
|
)
|
(5.2
|
)
|
(12.9
|
)
|
(16.9
|
)
|
||||||||
Loss on disposal of property, plant & equipment, net
|
2.2
|
0.2
|
3.1
|
1.6
|
||||||||||||
Other non-cash items
|
2.6
|
(6.3
|
)
|
0.9
|
(16.5
|
)
|
||||||||||
Change in operating assets and liabilities, net of acquisitions:
|
||||||||||||||||
Accounts receivable
|
(25.7
|
)
|
(19.4
|
)
|
(47.4
|
)
|
(60.7
|
)
|
||||||||
Inventories
|
4.6
|
6.1
|
1.3
|
(4.9
|
)
|
|||||||||||
Prepaid expenses and other current assets
|
(3.4
|
)
|
(4.5
|
)
|
(7.8
|
)
|
25.8
|
|||||||||
Other assets
|
(1.2
|
)
|
(1.3
|
)
|
1.2
|
(3.7
|
)
|
|||||||||
Accounts payable and accrued liabilities, and other liabilities
|
44.6
|
25.2
|
14.6
|
10.0
|
||||||||||||
Income taxes recoverable
|
-
|
1.0
|
(2.9
|
)
|
1.6
|
|||||||||||
Net cash provided by operating activities
|
87.6
|
75.7
|
68.9
|
74.6
|
||||||||||||
Investing Activities
|
||||||||||||||||
Acquisitions, net of cash received
|
(1.8
|
)
|
(0.5
|
)
|
(46.2
|
)
|
(0.5
|
)
|
||||||||
Additions to property, plant & equipment
|
(33.2
|
)
|
(29.9
|
)
|
(62.7
|
)
|
(57.2
|
)
|
||||||||
Additions to intangibles and other assets
|
(1.0
|
)
|
(0.1
|
)
|
(3.3
|
)
|
(2.2
|
)
|
||||||||
Proceeds from sale of property, plant & equipment and sale-leaseback
|
0.2
|
40.1
|
2.9
|
40.5
|
||||||||||||
Increase in restricted cash
|
(2.8
|
)
|
-
|
(2.8
|
)
|
-
|
||||||||||
Net cash (used in) provided by investing activities
|
(38.6
|
)
|
9.6
|
(112.1
|
)
|
(19.4
|
)
|
|||||||||
Financing Activities
|
||||||||||||||||
Payments of long-term debt
|
(0.4
|
)
|
(1.1
|
)
|
(1.5
|
)
|
(1.9
|
)
|
||||||||
Borrowings under ABL
|
123.9
|
654.1
|
621.1
|
748.9
|
||||||||||||
Payments under ABL
|
(187.7
|
)
|
(674.4
|
)
|
(746.0
|
)
|
(777.2
|
)
|
||||||||
Distributions to non-controlling interests
|
(1.0
|
)
|
(1.6
|
)
|
(3.3
|
)
|
(3.6
|
)
|
||||||||
Issuance of common shares
|
220.1
|
142.5
|
364.2
|
142.6
|
||||||||||||
Financing fees
|
-
|
(0.2
|
)
|
-
|
(0.2
|
)
|
||||||||||
Preferred shares repurchased and cancelled
|
-
|
(148.8
|
)
|
-
|
(148.8
|
)
|
||||||||||
Common shares repurchased and cancelled
|
-
|
-
|
(1.1
|
)
|
(0.7
|
)
|
||||||||||
Dividends to common and preferred shareholders
|
(7.4
|
)
|
(9.0
|
)
|
(14.7
|
)
|
(18.0
|
)
|
||||||||
Payment of deferred consideration for acquisitions
|
-
|
(2.5
|
)
|
-
|
(2.5
|
)
|
||||||||||
Net cash provided by (used in) financing activities
|
147.5
|
(41.0
|
)
|
218.7
|
(61.4
|
)
|
||||||||||
Effect of exchange rate changes on cash
|
(2.1
|
)
|
0.2
|
(3.1
|
)
|
(1.0
|
)
|
|||||||||
Net increase (decrease) in cash & cash equivalents
|
194.4
|
44.5
|
172.4
|
(7.2
|
)
|
|||||||||||
Cash & cash equivalents, beginning of period
|
55.1
|
34.5
|
77.1
|
86.2
|
||||||||||||
Cash & cash equivalents, end of period
|
$
|
249.5
|
$
|
79.0
|
$
|
249.5
|
$
|
79.0
|
|
|
COTT CORPORATION
|
EXHIBIT 4
|
|||||||||||||||||||||||||||
SEGMENT INFORMATION
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||||||
For the Three Months Ended July 2, 2016
|
||||||||||||||||||||||||||||
Cott North
|
Cott
|
|||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
DSS
|
America
|
U.K.
|
All Other
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
20.7
|
$
|
280.9
|
$
|
55.0
|
$
|
1.1
|
$
|
-
|
$
|
(0.3
|
)
|
$
|
357.4
|
|||||||||||||
Branded retail
|
22.9
|
24.8
|
41.7
|
1.0
|
-
|
(0.4
|
)
|
90.0
|
||||||||||||||||||||
Contract packaging
|
-
|
35.7
|
31.0
|
5.0
|
-
|
(2.5
|
)
|
69.2
|
||||||||||||||||||||
Home and office bottled water delivery
|
177.2
|
-
|
-
|
-
|
-
|
-
|
177.2
|
|||||||||||||||||||||
Office coffee services
|
30.0
|
-
|
-
|
-
|
-
|
-
|
30.0
|
|||||||||||||||||||||
Concentrate and other
|
24.9
|
7.8
|
4.6
|
7.7
|
-
|
(3.8
|
)
|
41.2
|
||||||||||||||||||||
Total
|
$
|
275.7
|
$
|
349.2
|
$
|
132.3
|
$
|
14.8
|
$
|
-
|
$
|
(7.0
|
)
|
$
|
765.0
|
|||||||||||||
Gross Profit
1
|
$
|
170.8
|
$
|
51.8
|
$
|
24.1
|
$
|
5.9
|
$
|
-
|
$
|
-
|
$
|
252.6
|
||||||||||||||
Gross Margin %
2
|
62.0
|
%
|
15.1
|
%
|
18.2
|
%
|
39.9
|
%
|
-
|
-
|
33.0
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
17.8
|
$
|
18.4
|
$
|
11.7
|
$
|
3.4
|
$
|
(14.7
|
)
|
$
|
-
|
$
|
36.6
|
|||||||||||||
For the Three Months Ended July 4, 2015
|
||||||||||||||||||||||||||||
Cott North
|
Cott
|
|||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
DSS
|
America
|
U.K.
|
All Other
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
17.2
|
$
|
289.7
|
$
|
71.8
|
$
|
1.7
|
$
|
-
|
$
|
(0.7
|
)
|
$
|
379.7
|
|||||||||||||
Branded retail
|
20.6
|
30.8
|
48.5
|
1.3
|
-
|
(0.5
|
)
|
100.7
|
||||||||||||||||||||
Contract packaging
|
-
|
31.3
|
30.9
|
6.8
|
-
|
(1.6
|
)
|
67.4
|
||||||||||||||||||||
Home and office bottled water delivery
|
164.8
|
-
|
-
|
-
|
-
|
-
|
164.8
|
|||||||||||||||||||||
Office coffee services
|
29.7
|
-
|
-
|
-
|
-
|
-
|
29.7
|
|||||||||||||||||||||
Concentrate and other
|
24.7
|
7.2
|
2.6
|
6.6
|
-
|
(3.6
|
)
|
37.5
|
||||||||||||||||||||
Total
|
$
|
257.0
|
$
|
359.0
|
$
|
153.8
|
$
|
16.4
|
$
|
-
|
$
|
(6.4
|
)
|
$
|
779.8
|
|||||||||||||
Gross Profit
1
|
$
|
156.1
|
$
|
52.2
|
$
|
25.6
|
$
|
6.7
|
$
|
-
|
$
|
-
|
$
|
240.6
|
||||||||||||||
Gross Margin %
2
|
60.7
|
%
|
14.8
|
%
|
16.6
|
%
|
40.9
|
%
|
-
|
-
|
30.9
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
13.2
|
$
|
18.3
|
$
|
14.6
|
$
|
3.7
|
$
|
(3.7
|
)
|
$
|
-
|
$
|
46.1
|
|||||||||||||
For the Six Months Ended July 2, 2016
|
||||||||||||||||||||||||||||
Cott North
|
Cott
|
|||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
DSS
|
America
|
U.K.
|
All Other
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
37.6
|
$
|
529.4
|
$
|
106.0
|
$
|
1.6
|
$
|
-
|
$
|
(0.7
|
)
|
$
|
673.9
|
|||||||||||||
Branded retail
|
47.2
|
51.6
|
78.3
|
1.8
|
-
|
(0.7
|
)
|
178.2
|
||||||||||||||||||||
Contract packaging
|
-
|
67.1
|
59.3
|
9.7
|
-
|
(4.6
|
)
|
131.5
|
||||||||||||||||||||
Home and office bottled water delivery
|
339.2
|
-
|
-
|
-
|
-
|
-
|
339.2
|
|||||||||||||||||||||
Office coffee services
|
61.5
|
-
|
-
|
-
|
-
|
-
|
61.5
|
|||||||||||||||||||||
Concentrate and other
|
47.5
|
14.4
|
9.3
|
15.3
|
-
|
(7.4
|
)
|
79.1
|
||||||||||||||||||||
Total
|
$
|
533.0
|
$
|
662.5
|
$
|
252.9
|
$
|
28.4
|
$
|
-
|
$
|
(13.4
|
)
|
$
|
1,463.4
|
|||||||||||||
Gross Profit
1
|
$
|
325.2
|
$
|
86.7
|
$
|
43.8
|
$
|
10.9
|
$
|
-
|
$
|
-
|
$
|
466.6
|
||||||||||||||
Gross Margin %
2
|
61.0
|
%
|
13.4
|
%
|
17.3
|
%
|
38.4
|
%
|
-
|
-
|
31.9
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
23.5
|
$
|
19.0
|
$
|
21.6
|
$
|
5.9
|
$
|
(18.7
|
)
|
$
|
-
|
$
|
51.3
|
|||||||||||||
For the Six Months Ended July 4, 2015
|
||||||||||||||||||||||||||||
Cott North
|
Cott
|
|||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
DSS
|
America
|
U.K.
|
All Other
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||||
Revenue, net
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
32.7
|
$
|
557.4
|
$
|
132.7
|
$
|
2.8
|
$
|
-
|
$
|
(1.2
|
)
|
$
|
724.4
|
|||||||||||||
Branded retail
|
40.3
|
57.9
|
89.3
|
2.4
|
-
|
(0.9
|
)
|
189.0
|
||||||||||||||||||||
Contract packaging
|
-
|
56.9
|
59.3
|
10.7
|
-
|
(1.6
|
)
|
125.3
|
||||||||||||||||||||
Home and office bottled water delivery
|
314.4
|
-
|
-
|
-
|
-
|
-
|
314.4
|
|||||||||||||||||||||
Office coffee services
|
61.7
|
-
|
-
|
-
|
-
|
-
|
61.7
|
|||||||||||||||||||||
Concentrate and other
|
48.2
|
15.5
|
4.7
|
13.5
|
-
|
(7.1
|
)
|
74.8
|
||||||||||||||||||||
Total
|
$
|
497.3
|
$
|
687.7
|
$
|
286.0
|
$
|
29.4
|
$
|
-
|
$
|
(10.8
|
)
|
$
|
1,489.6
|
|||||||||||||
Gross Profit
1
|
$
|
296.0
|
$
|
93.7
|
$
|
41.2
|
$
|
11.0
|
$
|
-
|
$
|
-
|
$
|
441.9
|
||||||||||||||
Gross Margin %
2
|
59.5
|
%
|
13.8
|
%
|
14.4
|
%
|
37.4
|
%
|
-
|
-
|
29.7
|
%
|
||||||||||||||||
Operating income (loss)
|
$
|
11.7
|
$
|
25.5
|
$
|
18.5
|
$
|
5.3
|
$
|
(8.2
|
)
|
$
|
-
|
$
|
52.8
|
1
Gross profit from external revenues.
|
|||||
2
Cott North America gross margin relative to external revenues.
|
|
|
COTT CORPORATION
|
EXHIBIT 5
|
|||||||||||||||||||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - Analysis of Revenue by Reporting Segment
|
||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||||||
(in millions of U.S. dollars, except percentage amounts)
|
July 2, 2016
|
|||||||||||||||||||||||
Cott North
|
||||||||||||||||||||||||
DSS
|
America
|
Cott U.K.
|
All Other
|
Elimination
|
Cott
1
|
|||||||||||||||||||
Change in revenue
|
$
|
18.7
|
$
|
(9.8
|
)
|
$
|
(21.5
|
)
|
$
|
(1.6
|
)
|
$
|
(0.6
|
)
|
$
|
(14.8
|
)
|
|||||||
Impact of foreign exchange
2
|
-
|
2.5
|
9.1
|
1.0
|
-
|
12.6
|
||||||||||||||||||
Change excluding foreign exchange
|
$
|
18.7
|
$
|
(7.3
|
)
|
$
|
(12.4
|
)
|
$
|
(0.6
|
)
|
$
|
(0.6
|
)
|
$
|
(2.2
|
)
|
|||||||
Percentage change in revenue
|
7.3
|
%
|
-2.7
|
%
|
-14.0
|
%
|
-9.8
|
%
|
9.4
|
%
|
-1.9
|
%
|
||||||||||||
Percentage change in revenue excluding foreign exchange
|
7.3
|
%
|
-2.0
|
%
|
-8.1
|
%
|
-3.7
|
%
|
9.4
|
%
|
-0.3
|
%
|
||||||||||||
For the Six Months Ended
|
||||||||||||||||||||||||
(in millions of U.S. dollars, except percentage amounts)
|
July 2, 2016
|
|||||||||||||||||||||||
Cott North
|
||||||||||||||||||||||||
DSS
|
America
|
Cott U.K.
|
All Other
|
Elimination
|
Cott
1
|
|||||||||||||||||||
Change in revenue
|
$
|
35.7
|
$
|
(25.2
|
)
|
$
|
(33.1
|
)
|
$
|
(1.0
|
)
|
$
|
(2.6
|
)
|
$
|
(26.2
|
)
|
|||||||
Impact of foreign exchange
2
|
-
|
5.8
|
16.0
|
2.0
|
-
|
23.8
|
||||||||||||||||||
Change excluding foreign exchange
|
$
|
35.7
|
$
|
(19.4
|
)
|
$
|
(17.1
|
)
|
$
|
1.0
|
$
|
(2.6
|
)
|
$
|
(2.4
|
)
|
||||||||
Percentage change in revenue
|
7.2
|
%
|
-3.7
|
%
|
-11.6
|
%
|
-3.4
|
%
|
24.1
|
%
|
-1.8
|
%
|
||||||||||||
Percentage change in revenue excluding foreign exchange
|
7.2
|
%
|
-2.8
|
%
|
-6.0
|
%
|
3.4
|
%
|
24.1
|
%
|
-0.2
|
%
|
1
Cott includes the following reporting segments: DSS, 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.
|
|
|
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 Six Months Ended
|
|||||||||||||||
July 2, 2016
|
July 4, 2015
|
July 2, 2016
|
July 4, 2015
|
|||||||||||||
Net income (loss) attributed to Cott Corporation
|
$
|
7.4
|
$
|
2.2
|
$
|
4.1
|
$
|
(3.8
|
)
|
|||||||
Interest expense, net
|
27.0
|
27.9
|
54.8
|
55.6
|
||||||||||||
Income tax benefit
|
2.3
|
1.1
|
11.3
|
10.5
|
||||||||||||
Depreciation & amortization
|
53.5
|
58.2
|
106.0
|
115.6
|
||||||||||||
Net income attributable to non-controlling interests
|
1.5
|
1.7
|
2.9
|
3.0
|
||||||||||||
Accumulated dividends on preferred shares
|
-
|
2.4
|
-
|
5.9
|
||||||||||||
Foreign exchange impact on redemption of preferred shares
|
-
|
12.0
|
-
|
12.0
|
||||||||||||
EBITDA
|
$
|
87.1
|
$
|
103.3
|
$
|
156.5
|
$
|
177.8
|
||||||||
Acquisition and integration costs
|
11.7
|
4.1
|
13.1
|
8.8
|
||||||||||||
Purchase accounting adjustments
|
-
|
-
|
0.5
|
4.2
|
||||||||||||
Unrealized commodity hedging loss (gain), net
|
0.1
|
(0.9
|
)
|
0.1
|
(1.2
|
)
|
||||||||||
Unrealized foreign exchange and other losses (gains), net
|
2.2
|
0.4
|
(0.4
|
)
|
(10.5
|
)
|
||||||||||
Loss on disposal of property, plant & equipment, net
|
2.2
|
0.2
|
3.1
|
1.7
|
||||||||||||
Other adjustments
|
1.6
|
1.2
|
2.9
|
1.2
|
||||||||||||
Adjusted EBITDA
|
$
|
104.9
|
$
|
108.3
|
$
|
175.8
|
$
|
182.0
|
|
|
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
|
||||||||
July 2, 2016
|
July 4, 2015
|
|||||||
Net cash provided by operating activities
|
$
|
87.6
|
$
|
75.7
|
||||
Less: Additions to property, plant & equipment
|
(33.2
|
)
|
(29.9
|
)
|
||||
Free Cash Flow
|
$
|
54.4
|
$
|
45.8
|
||||
Adjusted Free Cash Flow
|
$
|
54.4
|
$
|
45.8
|
||||
For the Six Months Ended
|
||||||||
July 2, 2016
|
July 4, 2015
|
|||||||
Net cash provided by operating activities
|
$
|
68.9
|
$
|
74.6
|
||||
Less: Additions to property, plant & equipment
|
(62.7
|
)
|
(57.2
|
)
|
||||
Free Cash Flow
|
$
|
6.2
|
$
|
17.4
|
||||
Less:
|
||||||||
Cash collateral
1
|
-
|
(29.4
|
)
|
|||||
Adjusted Free Cash Flow
|
$
|
6.2
|
$
|
(12.0
|
)
|
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.
|
|
|
1
Reflects tax effect of adjustments at the statutory tax rate within the applicable tax jurisdiction.
|
|
|
DS SERVICES REPORTING SEGMENT
|
EXHIBIT 9
|
|||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED REVENUES
|
||||||||
(in millions of U.S. dollars)
|
||||||||
Unaudited
|
||||||||
July 2, 2016
|
July 4, 2015
|
|||||||
Revenue, net
|
$
|
275.7
|
$
|
257.0
|
||||
Energy surcharge adjustment
1
|
1.6
|
|||||||
Less: Aquaterra revenue, net
|
(16.8
|
)
|
||||||
Adjusted Revenue excluding Aquaterra, net
|
$
|
260.5
|
$
|
257.0
|
||||
Net growth percentage
|
1.4
|
%
|
1
Represents the impact of the energy surcharge on current period operations assuming prior period average rate.
|
|
|
DS SERVICES REPORTING SEGMENT
|
EXHIBIT 10
|
|||||||||||||||
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 Six Months Ended
|
|||||||||||||||
July 2, 2016
|
July 4, 2015
|
July 2, 2016
|
July 4, 2015
|
|||||||||||||
Operating income (loss)
|
$
|
17.8
|
$
|
13.2
|
$
|
23.5
|
$
|
11.7
|
||||||||
Other income
|
(0.3
|
)
|
(0.2
|
)
|
(1.3
|
)
|
(0.4
|
)
|
||||||||
EBIT - DS SERVICES
|
$
|
18.1
|
$
|
13.4
|
$
|
24.8
|
$
|
12.1
|
||||||||
Depreciation & amortization
|
29.3
|
31.8
|
57.7
|
62.0
|
||||||||||||
EBITDA - DS SERVICES
|
$
|
47.4
|
$
|
45.2
|
$
|
82.5
|
$
|
74.1
|
||||||||
Acquisition and integration costs, net
|
1.0
|
3.1
|
2.1
|
6.1
|
||||||||||||
Purchase accounting adjustments, net
|
-
|
-
|
0.5
|
4.2
|
||||||||||||
Unrealized other gains, net
|
(0.3
|
)
|
(0.2
|
)
|
(1.3
|
)
|
(0.4
|
)
|
||||||||
Loss on disposal of property, plant & equipment
|
1.4
|
0.9
|
3.2
|
2.0
|
||||||||||||
Other adjustments
|
0.2
|
-
|
(0.9
|
)
|
-
|
|||||||||||
Adjusted EBITDA - DS SERVICES
|
$
|
49.7
|
$
|
49.0
|
$
|
86.1
|
$
|
86.0
|
|
|
S&D COFFEE, INC.
|
EXHIBIT 11 | |||
SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION
|
||||
(EBITDA)
|
||||
(in millions of U.S. dollars)
|
||||
Unaudited
|
||||
Full Year Pro Forma
2016E
|
||||
Operating income
|
$
|
16.3
|
||
Depreciation & amortization
|
16.8
|
|||
EBITDA
|
$
|
33.1
|
||
Shareholder expenses
|
4.7
|
|||
Acquisition, integration and restructuring costs
|
0.4
|
|||
Donations
|
0.5
|
|||
Adjusted EBITDA - S&D COFFEE, INC.
|
$
|
38.7
|
||
Pro forma adjustments
1
|
1.4
|
|||
Pro forma adjusted EBITDA - S&D COFFEE, INC.
|
$
|
40.1
|
||
Expected synergies
|
$
|
12.0
|
||
Pro forma adjusted EBITDA
|
40.1
|
|||
Synergized pro forma adjusted EBITDA
|
$
|
52.1
|
||
Approximate purchase price
|
355.0
|
|||
Synergized pro forma adjusted EBITDA run rate multiple
|
~6.8x
|
1
Represents adjustments to compensation plan.
|