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 February 18, 2016
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Cott Corporation
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(Registrant)
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February 18, 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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·
|
Adjusted free cash flow grew 25% to $134 million in fiscal 2015, and operating cash flow increased to $255 million, due to increased earnings, lower than expected capital expenditures (of approximately $15 million) and stringent working capital management.
|
·
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Gross profit grew to $896 million in fiscal 2015, with gross margin increasing from 13.1% in fiscal 2014 to 30.4% in fiscal 2015.
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·
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On January 4, 2016, Cott acquired Aquaterra, Canada's oldest and largest direct-to-consumer home and office water delivery business.
|
o
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Cott's normalized 2015 free cash flow, after deducting approximately $15 million of lower than expected capital expenditures, was approximately $120 million, which is estimated to grow at a mid-teen compound annual growth rate through 2018.
|
o
|
On January 4, 2016, Cott acquired Aquaterra for a purchase price of C$62 million. Aquaterra is Canada's oldest and largest direct-to-consumer home and office water delivery business with revenues of approximately C$75 million for the twelve months ended June 30, 2015. This acquisition builds on Cott's strategy of expanding its water, coffee and tea home and office services business, and further diversifies its customer base. The acquisition broadens Cott's customer reach by adding over 70,000 new customers and delivery points while creating cost synergies and a Canadian home and office services platform for continued organic and transaction related expansion.
|
o
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DS Services completed the acquisitions of nine small HOD water and coffee businesses during fiscal 2015.
|
o
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Cott captured $4 million of synergies related to the acquisition of DS Services during the quarter for a total of $10 million of synergies realized during fiscal 2015, with the goal of $30 million in synergies by the end of 2017.
|
o
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DS Services continued to grow, generating 4% pro forma revenue growth on an adjusted basis during the quarter and fiscal year.
|
o
|
Volume stabilization within the Cott North America business unit continued during the quarter as contract manufacturing volume grew by 40% and sparkling waters and mixers volume grew by 4% (excluding the 53
rd
week in 2014). Cott North America gross margin increased 190 basis points from 10.6% to 12.5% in the quarter and 170 basis points from 11.6% to 13.3% during the fiscal year as a result of stable volumes and cost and efficiency savings.
|
-
|
Adjusted free cash flow was $72 million. Reported free cash flow was $63 million, reflecting $88 million of net cash provided by operating activities less $25 million of capital expenditures.
|
-
|
Adjusted EBITDA increased 89% to $81 million due primarily to the addition of the DS Services business and stable volumes within the Cott North America business unit.
|
-
|
Revenue increased 29% to $699 million ($711 million excluding the impact of foreign exchange) compared to $544 million.
|
-
|
Gross profit increased 208% to $221 million, with a gross margin of 31.6% compared to 13.2%, due primarily to the addition of the DS Services business, stable volumes in the Cott North America business unit and cost and efficiency savings, offset in part by the impact of foreign exchange.
|
-
|
Adjusted net income and adjusted net income per diluted share were $3 million and $0.03, respectively, compared to adjusted net income and adjusted net income per diluted share of $34 million and $0.37, respectively. Reported net loss and net loss per diluted share were $4 million and $0.04, respectively, compared to reported net income and net income per diluted share of $19 million and $0.19, respectively. The changes in net income and earnings per share were largely driven by our income tax benefit which was approximately $6 million in the fourth quarter of 2015 compared to an income tax benefit of $65 million due primarily to the release of a valuation allowance in the fourth quarter of 2014.
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-
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DS Services pro forma revenue increased 8% to $256 million (4% on an adjusted basis) due primarily to growth in HOD water, single cup coffee delivery, and retail sales as well as the benefit of four additional shipping days during the quarter, offset in part by a reduced energy surcharge as a result of lower diesel fuel prices, and reduced sales in traditional brew basket coffee.
|
-
|
Cott North America volume was broadly flat in actual cases and was lower by 4% in servings (excluding the 53
rd
week in 2014) as increases in contract manufacturing and other growth areas such as sparkling waters and mixers offset the general market decline in carbonated soft drinks ("CSDs") and private label shelf stable juices ("SSJs"). Revenue was lower by 13% (6% excluding the impact of a 53
rd
week in 2014 and foreign exchange) at $305 million due primarily to an overall product mix shift into contract manufacturing and other private label categories.
|
-
|
U.K./Europe volume decreased 3% in actual cases and was higher by 2% in servings (excluding the 53
rd
week in 2014). Revenue was lower by 14% (6% excluding the impact of a 53
rd
week in 2014 and foreign exchange) at $131 million due primarily to an adverse product mix shift out of energy and sports drinks and into other products.
|
-
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All Other revenue excluding the impact of foreign exchange as well as the benefit from a 53
rd
week in 2014 was broadly flat.
|
-
|
Adjusted free cash flow increased 25% to $134 million. Reported free cash flow was $144 million, reflecting $255 million of net cash provided by operating activities less $111 million of capital expenditures.
|
-
|
Adjusted EBITDA increased 98% to $357 million ($369 million excluding the impact of foreign exchange) due primarily to the addition of the DS Services and Aimia Foods businesses as well as stable volumes within our Cott North America business unit, offset in part by the competitive environment for CSDs and SSJs in the traditional business.
|
-
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Revenue increased 40% to $2,944 million ($3,014 million excluding the impact of foreign exchange) compared to $2,103 million.
|
-
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Gross profit increased 224% to $896 million, with a gross margin of 30.4% compared to 13.1%. Excluding DS Services, gross margin increased by over 100 basis points to 14.4% driven primarily by stable volumes in the Cott North America business unit, the higher margin profile of the Aimia Foods business, and cost and efficiency savings, offset in part by the impact of foreign exchange and the competitive environment for CSDs and SSJs in the traditional business.
|
-
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Adjusted net income and adjusted net income per diluted share were $23 million and $0.22, respectively, compared to adjusted net income and adjusted net income per diluted share of $57 million and $0.60, respectively. Reported net loss and net loss per diluted share were $3 million and $0.03, respectively, compared to reported net income and net income per diluted share of $10 million and $0.10, respectively. The changes in net income and earnings per share were largely driven by our income tax benefit which was approximately $23 million in fiscal 2015 compared to an income tax benefit of $61 million due primarily to the release of a valuation allowance in 2014.
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-
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With increased earnings, lower than expected capital expenditures and stringent working capital management, Cott generated $134 million of adjusted free cash flow in fiscal 2015, surpassing its original goal of between $94 million to $114 million (which included $120-$125 million of forecasted capital expenditures) as well as fiscal 2014 adjusted free cash flow of $107 million.
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-
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Leverage (net debt to adjusted EBITDA) was approximately 4.4 times at the end of fiscal 2015.
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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
|
||||||||||||||||
For the Three Months Ended
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For the Year Ended
|
|||||||||||||||
January 2, 2016
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January 3, 2015
|
January 2, 2016
|
January 3, 2015
|
|||||||||||||
Revenue, net
|
$
|
698.8
|
$
|
543.5
|
$
|
2,944.0
|
$
|
2,102.8
|
||||||||
Cost of sales
|
477.7
|
471.7
|
2,048.5
|
1,826.3
|
||||||||||||
Gross profit
|
221.1
|
71.8
|
895.5
|
276.5
|
||||||||||||
Selling, general and administrative expenses
|
193.7
|
66.2
|
768.6
|
213.7
|
||||||||||||
Loss on disposal of property, plant & equipment
|
4.2
|
1.3
|
6.9
|
1.7
|
||||||||||||
Restructuring
|
-
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-
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-
|
2.4
|
||||||||||||
Asset impairments
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-
|
-
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-
|
1.7
|
||||||||||||
Acquisition and integration expenses
|
5.2
|
37.9
|
20.6
|
41.3
|
||||||||||||
Operating income (loss)
|
18.0
|
(33.6
|
)
|
99.4
|
15.7
|
|||||||||||
Other (income) expense, net
|
(0.7
|
)
|
(1.9
|
)
|
(9.5
|
)
|
21.0
|
|||||||||
Interest expense, net
|
28.0
|
12.5
|
111.0
|
39.7
|
||||||||||||
Loss before income taxes
|
(9.3
|
)
|
(44.2
|
)
|
(2.1
|
)
|
(45.0
|
)
|
||||||||
Income tax benefit
|
(6.4
|
)
|
(65.2
|
)
|
(22.7
|
)
|
(61.4
|
)
|
||||||||
Net (loss) income
|
$
|
(2.9
|
)
|
$
|
21.0
|
$
|
20.6
|
$
|
16.4
|
|||||||
Less: Net income attributable to non-controlling interests
|
1.5
|
1.5
|
6.1
|
5.6
|
||||||||||||
Less: Accumulated dividends on convertible preferred shares
|
-
|
0.6
|
4.5
|
0.6
|
||||||||||||
Less: Accumulated dividends on non-convertible preferred shares
|
-
|
0.2
|
1.4
|
0.2
|
||||||||||||
Less: Foreign exchange impact on redemption of preferred shares
|
-
|
-
|
12.0
|
-
|
||||||||||||
Net (loss) income attributed to Cott Corporation
|
$
|
(4.4
|
)
|
$
|
18.7
|
$
|
(3.4
|
)
|
$
|
10.0
|
||||||
Net (loss) income per common share attributed to Cott Corporation
|
||||||||||||||||
Basic
|
$
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(0.04
|
)
|
$
|
0.20
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$
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(0.03
|
)
|
$
|
0.11
|
||||||
Diluted
|
$
|
(0.04
|
)
|
$
|
0.19
|
$
|
(0.03
|
)
|
$
|
0.10
|
||||||
Weighted average outstanding shares (millions) attributed to Cott Corporation
|
||||||||||||||||
Basic
|
109.7
|
93.0
|
103.0
|
93.8
|
||||||||||||
Diluted
|
109.7
|
98.0
|
103.0
|
95.9
|
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
|
||||||||
January 2, 2016
|
January 3, 2015
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash & cash equivalents
|
$
|
77.1
|
$
|
86.2
|
||||
Accounts receivable, net of allowance
|
293.3
|
305.7
|
||||||
Income taxes recoverable
|
1.6
|
1.6
|
||||||
Inventories
|
249.4
|
262.4
|
||||||
Prepaid expenses and other current assets
|
17.2
|
59.3
|
||||||
Total current assets
|
638.6
|
715.2
|
||||||
Property, plant & equipment, net
|
769.8
|
864.5
|
||||||
Goodwill
|
759.6
|
743.6
|
||||||
Intangibles and other assets, net
|
711.7
|
758.0
|
||||||
Deferred income taxes
|
7.6
|
2.5
|
||||||
Other tax receivable
|
-
|
0.2
|
||||||
Total assets
|
$
|
2,887.3
|
$
|
3,084.0
|
||||
LIABILITIES, PREFERRED SHARES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Short-term borrowings
|
$
|
122.0
|
$
|
229.0
|
||||
Current maturities of long-term debt
|
3.4
|
4.0
|
||||||
Accounts payable and accrued liabilities
|
437.6
|
420.3
|
||||||
Total current liabilities
|
563.0
|
653.3
|
||||||
Long-term debt
|
1,525.4
|
1,541.3
|
||||||
Deferred income taxes
|
76.5
|
119.9
|
||||||
Other long-term liabilities
|
76.5
|
71.8
|
||||||
Total liabilities
|
2,241.4
|
2,386.3
|
||||||
Convertible preferred shares, $1,000 stated value, no shares issued
|
||||||||
(January 3, 2015 - 116,054 shares issued)
|
-
|
116.1
|
||||||
Non-convertible preferred shares, $1,000 stated value, no shares issued
|
||||||||
(January 3, 2015 - 32,711 shares issued)
|
-
|
32.7
|
||||||
Equity
|
||||||||
Capital stock, no par - 109,695,435 (January 3, 2015 - 93,072,850) shares issued
|
534.7
|
388.3
|
||||||
Additional paid-in-capital
|
51.2
|
46.6
|
||||||
Retained earnings
|
129.6
|
158.1
|
||||||
Accumulated other comprehensive loss
|
(76.2
|
)
|
(51.0
|
)
|
||||
Total Cott Corporation equity
|
639.3
|
542.0
|
||||||
Non-controlling interests
|
6.6
|
6.9
|
||||||
Total equity
|
645.9
|
548.9
|
||||||
Total liabilities, preferred shares and equity
|
$
|
2,887.3
|
$
|
3,084.0
|
COTT CORPORATION
|
EXHIBIT 3
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||
Unaudited
|
||||||||||||||||
For the Three Months Ended
|
For the Year Ended
|
|||||||||||||||
January 2, 2016
|
January 3, 2015
|
January 2, 2016
|
January 3, 2015
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net (loss) income
|
$
|
(2.9
|
)
|
$
|
21.0
|
$
|
20.6
|
$
|
16.4
|
|||||||
Depreciation & amortization
|
50.1
|
33.1
|
223.8
|
110.7
|
||||||||||||
Amortization of financing fees
|
1.2
|
0.6
|
4.8
|
2.5
|
||||||||||||
Amortization of senior notes premium
|
(1.4
|
)
|
(0.4
|
)
|
(5.6
|
)
|
(0.4
|
)
|
||||||||
Share-based compensation expense
|
1.9
|
0.9
|
10.3
|
5.8
|
||||||||||||
Decrease in deferred income taxes
|
(8.8
|
)
|
(69.9
|
)
|
(30.4
|
)
|
(65.8
|
)
|
||||||||
Write-off of financing fees and discount
|
-
|
-
|
-
|
4.1
|
||||||||||||
Loss on disposal of property, plant & equipment
|
4.2
|
1.3
|
6.9
|
1.7
|
||||||||||||
Asset impairments
|
-
|
-
|
-
|
1.7
|
||||||||||||
Other non-cash items
|
2.4
|
1.0
|
(9.4
|
)
|
0.3
|
|||||||||||
Change in operating assets and liabilities, net of acquisitions:
|
||||||||||||||||
Accounts receivable
|
27.4
|
40.7
|
4.5
|
1.5
|
||||||||||||
Inventories
|
0.9
|
3.1
|
6.5
|
12.9
|
||||||||||||
Prepaid expenses and other current assets
|
2.1
|
(23.7
|
)
|
30.8
|
(25.2
|
)
|
||||||||||
Other assets
|
(1.0
|
)
|
1.9
|
(8.5
|
)
|
1.7
|
||||||||||
Accounts payable and accrued liabilities, and other liabilities
|
11.0
|
12.9
|
(3.3
|
)
|
(6.8
|
)
|
||||||||||
Income taxes recoverable
|
1.1
|
(3.3
|
)
|
3.6
|
(4.4
|
)
|
||||||||||
Net cash provided by operating activities
|
88.2
|
19.2
|
254.6
|
56.7
|
||||||||||||
Investing Activities
|
||||||||||||||||
Acquisitions, net of cash received
|
(1.5
|
)
|
(717.7
|
)
|
(24.0
|
)
|
(798.5
|
)
|
||||||||
Additions to property, plant & equipment
|
(25.3
|
)
|
(15.3
|
)
|
(110.8
|
)
|
(46.7
|
)
|
||||||||
Additions to intangibles and other assets
|
(1.9
|
)
|
(2.6
|
)
|
(4.6
|
)
|
(6.9
|
)
|
||||||||
Proceeds from sale of property, plant & equipment
|
||||||||||||||||
and sale-leaseback
|
-
|
0.2
|
40.9
|
1.8
|
||||||||||||
Other investing activities
|
(1.2
|
)
|
-
|
(1.2
|
)
|
-
|
||||||||||
Net cash used in investing activities
|
(29.9
|
)
|
(735.4
|
)
|
(99.7
|
)
|
(850.3
|
)
|
||||||||
Financing Activities
|
||||||||||||||||
Payments of long-term debt
|
(0.8
|
)
|
(1.0
|
)
|
(3.7
|
)
|
(393.6
|
)
|
||||||||
Issuance of long-term debt
|
-
|
625.0
|
-
|
1,150.0
|
||||||||||||
Borrowings under ABL
|
193.2
|
484.7
|
994.5
|
959.0
|
||||||||||||
Payments under ABL
|
(227.3
|
)
|
(324.2
|
)
|
(1,101.8
|
)
|
(779.6
|
)
|
||||||||
Distributions to non-controlling interests
|
(1.7
|
)
|
(1.3
|
)
|
(8.5
|
)
|
(8.5
|
)
|
||||||||
Issuance of common shares
|
-
|
-
|
143.1
|
-
|
||||||||||||
Financing fees
|
(0.3
|
)
|
(14.9
|
)
|
(0.6
|
)
|
(24.0
|
)
|
||||||||
Preferred shares repurchased and cancelled
|
-
|
-
|
(148.8
|
)
|
-
|
|||||||||||
Common shares repurchased and cancelled
|
-
|
(4.4
|
)
|
(0.8
|
)
|
(12.1
|
)
|
|||||||||
Dividends paid to common and preferred shareholders
|
(6.5
|
)
|
(6.4
|
)
|
(31.0
|
)
|
(22.8
|
)
|
||||||||
Payment of deferred consideration for acquisitions
|
-
|
-
|
(2.5
|
)
|
(32.4
|
)
|
||||||||||
Other financing activities
|
-
|
(0.3
|
)
|
-
|
(0.3
|
)
|
||||||||||
Net cash (used in) provided by financing activities
|
(43.4
|
)
|
757.2
|
(160.1
|
)
|
835.7
|
||||||||||
Effect of exchange rate changes on cash
|
(1.5
|
)
|
(2.2
|
)
|
(3.9
|
)
|
(3.1
|
)
|
||||||||
Net increase (decrease) in cash & cash equivalents
|
13.4
|
38.8
|
(9.1
|
)
|
39.0
|
|||||||||||
Cash & cash equivalents, beginning of period
|
63.7
|
47.3
|
86.2
|
47.2
|
||||||||||||
Cash & cash equivalents, end of period
|
$
|
77.1
|
$
|
86.1
|
$
|
77.1
|
$
|
86.2
|
||||||||
COTT CORPORATION
|
EXHIBIT 4
|
|||||||||||||||||||||||||||
SEGMENT INFORMATION - NON-GAAP
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
||||||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||||||
For the Three Months Ended January 2, 2016
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Cott North America
|
DSS
|
Cott U.K.
|
All Other
|
Corporate
|
Elimination
|
Total
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
248.1
|
$
|
15.6
|
$
|
64.2
|
$
|
0.8
|
$
|
-
|
$
|
-
|
$
|
328.7
|
||||||||||||||
Branded retail
|
27.0
|
20.9
|
38.5
|
0.8
|
-
|
(0.3
|
)
|
86.9
|
||||||||||||||||||||
Contract packaging
|
23.8
|
-
|
24.4
|
5.8
|
-
|
(2.5
|
)
|
51.5
|
||||||||||||||||||||
Home and office bottled water delivery
|
-
|
163.6
|
-
|
-
|
-
|
-
|
163.6
|
|||||||||||||||||||||
Office coffee services
|
-
|
31.5
|
-
|
-
|
-
|
-
|
31.5
|
|||||||||||||||||||||
Concentrate and other
|
5.8
|
24.1
|
4.0
|
5.4
|
-
|
(2.7
|
)
|
36.6
|
||||||||||||||||||||
Total
|
$
|
304.7
|
$
|
255.7
|
$
|
131.1
|
$
|
12.8
|
$
|
-
|
$
|
(5.5
|
)
|
$
|
698.8
|
|||||||||||||
Gross Profit
1
|
$
|
37.5
|
$
|
158.5
|
$
|
20.4
|
$
|
4.7
|
$
|
-
|
$
|
-
|
$
|
221.1
|
||||||||||||||
Gross Margin %
2
|
12.5
|
%
|
62.0
|
%
|
15.6
|
%
|
36.7
|
%
|
$
|
-
|
$
|
-
|
31.6
|
%
|
||||||||||||||
Operating income (loss)
|
$
|
4.7
|
$
|
13.3
|
$
|
2.5
|
$
|
2.1
|
$
|
(4.6
|
)
|
$
|
-
|
$
|
18.0
|
|||||||||||||
For the Three Months Ended January 3, 2015
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Cott North America
|
DSS
|
Cott U.K.
|
All Other
|
Corporate
|
Elimination
|
Total
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
301.1
|
$
|
2.1
|
$
|
70.2
|
$
|
2.9
|
$
|
-
|
$
|
(0.4
|
)
|
$
|
375.9
|
|||||||||||||
Branded retail
|
26.5
|
2.6
|
46.1
|
0.9
|
-
|
(0.3
|
)
|
75.8
|
||||||||||||||||||||
Contract packaging
|
15.6
|
-
|
33.7
|
4.0
|
-
|
(0.7
|
)
|
52.6
|
||||||||||||||||||||
Home and office bottled water delivery
|
-
|
12.2
|
-
|
-
|
-
|
-
|
12.2
|
|||||||||||||||||||||
Office coffee services
|
-
|
4.3
|
-
|
-
|
-
|
-
|
4.3
|
|||||||||||||||||||||
Concentrate and other
|
8.5
|
7.5
|
2.6
|
7.3
|
-
|
(3.2
|
)
|
22.7
|
||||||||||||||||||||
Total
|
$
|
351.7
|
$
|
28.7
|
$
|
152.6
|
$
|
15.1
|
$
|
-
|
$
|
(4.6
|
)
|
$
|
543.5
|
|||||||||||||
Gross Profit
1
|
$
|
36.9
|
$
|
12.8
|
$
|
17.1
|
$
|
5.0
|
$
|
-
|
$
|
-
|
$
|
71.8
|
||||||||||||||
Gross Margin %
2
|
10.6
|
%
|
44.6
|
%
|
11.2
|
%
|
33.1
|
%
|
$
|
-
|
$
|
-
|
13.2
|
%
|
||||||||||||||
Operating income (loss)
|
$
|
3.0
|
$
|
(1.7
|
)
|
$
|
3.1
|
$
|
1.8
|
$
|
(39.8
|
)
|
$
|
-
|
$
|
(33.6
|
)
|
|||||||||||
For the Year ended January 2, 2016
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Cott North America
|
DSS
|
Cott U.K.
|
All Other
|
Corporate
|
Elimination
|
Total
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
1,075.9
|
$ |
65.3
|
$
|
262.3
|
$
|
4.5
|
$
|
-
|
$
|
(1.6
|
)
|
$
|
1,406.4
|
|||||||||||||
Branded retail
|
114.9
|
84.1
|
169.8
|
4.1
|
-
|
(1.5
|
)
|
371.4
|
||||||||||||||||||||
Contract packaging
|
111.8
|
-
|
114.0
|
22.2
|
-
|
(6.5
|
)
|
241.5
|
||||||||||||||||||||
Home and office bottled water delivery
|
-
|
651.3
|
-
|
-
|
-
|
-
|
651.3
|
|||||||||||||||||||||
Office coffee services
|
-
|
121.3
|
-
|
-
|
-
|
-
|
121.3
|
|||||||||||||||||||||
Concentrate and other
|
28.3
|
99.1
|
10.9
|
26.8
|
-
|
(13.0
|
)
|
152.1
|
||||||||||||||||||||
Total
|
$
|
1,330.9
|
$
|
1,021.1
|
$
|
557.0
|
$
|
57.6
|
$
|
-
|
$
|
(22.6
|
)
|
$
|
2,944.0
|
|||||||||||||
Gross Profit
1
|
$
|
173.8
|
$
|
618.3
|
$
|
81.5
|
$
|
21.9
|
$
|
-
|
$
|
-
|
$
|
895.5
|
||||||||||||||
Gross Margin %
2
|
13.3
|
%
|
60.6
|
%
|
14.6
|
%
|
38.0
|
%
|
$
|
-
|
$
|
-
|
30.4
|
%
|
||||||||||||||
Operating income (loss)
|
$
|
38.5
|
$
|
39.0
|
$
|
28.0
|
$
|
10.5
|
$
|
(16.6
|
)
|
$
|
-
|
$
|
99.4
|
|||||||||||||
For the Year ended January 3, 2015
|
||||||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Cott North America
|
DSS
|
Cott U.K.
|
All Other
|
Corporate
|
Elimination
|
Total
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Private label retail
|
$
|
1,206.4
|
$
|
2.1
|
$
|
296.7
|
$
|
7.4
|
$
|
-
|
$
|
(1.2
|
)
|
$
|
1,511.4
|
|||||||||||||
Branded retail
|
108.4
|
2.6
|
173.7
|
4.5
|
-
|
(1.6
|
)
|
287.6
|
||||||||||||||||||||
Contract packaging
|
86.9
|
-
|
120.8
|
24.6
|
-
|
(6.7
|
)
|
225.6
|
||||||||||||||||||||
Home and office bottled water delivery
|
-
|
12.2
|
-
|
-
|
-
|
-
|
12.2
|
|||||||||||||||||||||
Office coffee services
|
-
|
4.3
|
-
|
-
|
-
|
-
|
4.3
|
|||||||||||||||||||||
Concentrate and other
|
31.8
|
7.5
|
6.7
|
28.5
|
-
|
(12.8
|
)
|
61.7
|
||||||||||||||||||||
Total
|
$
|
1,433.5
|
$
|
28.7
|
$
|
597.9
|
$
|
65.0
|
$
|
-
|
$
|
(22.3
|
)
|
$
|
2,102.8
|
|||||||||||||
Gross Profit
1
|
$
|
163.5
|
$
|
12.8
|
$
|
78.8
|
$
|
21.4
|
$
|
-
|
$
|
-
|
$
|
276.5
|
||||||||||||||
Gross Margin %
2
|
11.6
|
%
|
44.6
|
%
|
13.2
|
%
|
32.9
|
%
|
$
|
-
|
$
|
-
|
13.1
|
%
|
||||||||||||||
Operating income (loss)
|
$
|
29.7
|
$
|
(1.7
|
)
|
$
|
26.3
|
$
|
10.0
|
$
|
(48.6
|
)
|
$
|
-
|
$
|
15.7
|
||||||||||||
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)
|
January 2, 2016
|
|||||||||||||||||||||||
Cott North America
|
DSS
|
Cott U.K.
|
All Other
|
Elimination
|
Cott
1
|
|||||||||||||||||||
Change in revenue
|
$
|
(47.0
|
)
|
$
|
227.0
|
$
|
(21.5
|
)
|
$
|
(2.3
|
)
|
$
|
(0.9
|
)
|
$
|
155.3
|
||||||||
Impact of foreign exchange
2
|
5.2
|
-
|
5.7
|
1.3
|
-
|
12.2
|
||||||||||||||||||
Change excluding foreign exchange
|
$
|
(41.8
|
)
|
$
|
227.0
|
$
|
(15.8
|
)
|
$
|
(1.0
|
)
|
$
|
(0.9
|
)
|
$
|
167.5
|
||||||||
Percentage change in revenue
|
-13.4
|
%
|
790.9
|
%
|
-14.1
|
%
|
-15.2
|
%
|
19.6
|
%
|
28.6
|
%
|
||||||||||||
Percentage change in revenue excluding foreign exchange
|
-11.9
|
%
|
790.9
|
%
|
-10.4
|
%
|
-6.6
|
%
|
19.6
|
%
|
30.8
|
%
|
||||||||||||
Impact of 53rd week in 2014
|
21.5
|
-
|
6.4
|
1.2
|
-
|
29.1
|
||||||||||||||||||
Impact of four additional shipping days in 2015
|
-
|
(12.5
|
)
|
-
|
-
|
-
|
(12.5
|
)
|
||||||||||||||||
Change excluding foreign exchange and impact of 53rd week in 2014 and additional shipping days in 2015
|
$
|
(20.3
|
)
|
$
|
214.5
|
$
|
(9.4
|
)
|
$
|
0.2
|
$
|
(0.9
|
)
|
$
|
184.1
|
|||||||||
Percentage change in revenue excluding foreign exchange and impact of 53rd week in 2014 and four additional shipping days in 2015
|
-6.1
|
%
|
747.4
|
%
|
-6.4
|
%
|
1.4
|
%
|
19.6
|
%
|
35.8
|
%
|
||||||||||||
For the Year Ended
|
||||||||||||||||||||||||
(in millions of U.S. dollars, except percentage amounts)
|
January 2, 2016
|
|||||||||||||||||||||||
Cott North America
|
DSS
|
Cott U.K.
|
All Other
|
Elimination
|
Cott
1
|
|||||||||||||||||||
Change in revenue
|
$
|
(102.6
|
)
|
$
|
992.4
|
$
|
(40.9
|
)
|
$
|
(7.4
|
)
|
$
|
(0.3
|
)
|
$
|
841.2
|
||||||||
Impact of foreign exchange
2
|
20.7
|
-
|
44.0
|
5.0
|
-
|
69.7
|
||||||||||||||||||
Change excluding foreign exchange
|
$
|
(81.9
|
)
|
$
|
992.4
|
$
|
3.1
|
$
|
(2.4
|
)
|
$
|
(0.3
|
)
|
$
|
910.9
|
|||||||||
Percentage change in revenue
|
-7.2
|
%
|
3457.8
|
%
|
-6.8
|
%
|
-11.4
|
%
|
1.3
|
%
|
40.0
|
%
|
||||||||||||
Percentage change in revenue excluding foreign exchange
|
-5.7
|
%
|
3457.8
|
%
|
0.5
|
%
|
-3.7
|
%
|
1.3
|
%
|
43.3
|
%
|
||||||||||||
Impact of 53rd week in 2014
|
21.5
|
-
|
6.4
|
1.2
|
-
|
29.1
|
||||||||||||||||||
Impact of four additional shipping days in 2015
|
-
|
(12.5
|
)
|
-
|
-
|
-
|
(12.5
|
)
|
||||||||||||||||
Change excluding foreign exchange and impact of 53rd week in 2014 and additional shipping days in 2015
|
$
|
(60.4
|
)
|
$
|
979.9
|
$
|
9.5
|
$
|
(1.2
|
)
|
$
|
(0.3
|
)
|
$
|
927.5
|
|||||||||
Percentage change in revenue excluding foreign exchange and impact of 53rd week in 2014 and four additional shipping days in 2015
|
-4.3
|
%
|
3414.3
|
%
|
1.6
|
%
|
-1.9
|
%
|
1.3
|
%
|
44.7
|
%
|
||||||||||||
1
Cott includes the following reporting segments: Cott North America, DSS, Cott U.K. and All Other.
|
||||||||||||||||||||||||
2
Impact of foreign exchange is the difference between the current year's revenue translated utilizing the current year's average
|
||||||||||||||||||||||||
foreign exchange rates less the current year's revenue translated utilizing the prior year's average foreign exchange rates.
|
COTT CORPORATION
|
EXHIBIT 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 Year Ended
|
|||||||||||||||
January 2, 2016
|
January 3, 2015
|
January 2, 2016
|
January 3, 2015
|
|||||||||||||
Net (loss) income attributed to Cott Corporation
|
$
|
(4.4
|
)
|
$
|
18.7
|
$
|
(3.4
|
)
|
$
|
10.0
|
||||||
Interest expense, net
|
28.0
|
12.5
|
111.0
|
39.7
|
||||||||||||
Income tax benefit
|
(6.4
|
)
|
(65.2
|
)
|
(22.7
|
)
|
(61.4
|
)
|
||||||||
Depreciation & amortization
|
50.1
|
33.1
|
223.8
|
110.7
|
||||||||||||
Net income attributable to non-controlling interests
|
1.5
|
1.5
|
6.1
|
5.6
|
||||||||||||
Accumulated dividends on preferred shares
|
-
|
0.8
|
5.9
|
0.8
|
||||||||||||
Foreign exchange impact on redemption of preferred shares
|
-
|
-
|
12.0
|
-
|
||||||||||||
EBITDA
|
$
|
68.8
|
$
|
1.4
|
$
|
332.7
|
$
|
105.4
|
||||||||
Restructuring and asset impairments
|
-
|
-
|
-
|
4.1
|
||||||||||||
Bond redemption and other financing costs
|
-
|
-
|
-
|
25.2
|
||||||||||||
Facility reorganization costs
|
3.0
|
-
|
3.0
|
-
|
||||||||||||
Acquisition and integration costs
|
5.2
|
37.9
|
20.6
|
41.3
|
||||||||||||
Purchase accounting adjustments, net
|
-
|
1.7
|
4.2
|
2.9
|
||||||||||||
Unrealized commodity hedging loss (gain), net
|
-
|
1.2
|
(1.2
|
)
|
1.2
|
|||||||||||
Unrealized foreign exchange and other losses (gains), net
|
0.2
|
(2.2
|
)
|
(10.9
|
)
|
(0.5
|
)
|
|||||||||
Loss on disposal of property, plant & equipment
|
4.1
|
2.7
|
6.9
|
3.2
|
||||||||||||
Other adjustments
|
(0.8
|
)
|
-
|
1.7
|
(2.6
|
)
|
||||||||||
Adjusted EBITDA
|
$
|
80.5
|
$
|
42.7
|
$
|
357.0
|
$
|
180.2
|
||||||||
Impact of foreign exchange
1
|
$
|
2.6
|
$
|
-
|
$
|
12.1
|
$
|
-
|
||||||||
Adjusted EBITDA, foreign exchange impacted
|
$
|
83.1
|
$
|
42.7
|
$
|
369.1
|
$
|
180.2
|
||||||||
1
Includes translational and transactional foreign exchange impact.
|
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
|
|||||||||||||
January 2, 2016
|
January 3, 2015
|
||||||||||||
Net cash provided by operating activities
|
$
|
88.2
|
$
|
19.2
|
|||||||||
Less: Additions to property, plant & equipment
|
(25.3
|
)
|
(15.3
|
)
|
|||||||||
Free Cash Flow
|
$
|
62.9
|
$
|
3.9
|
|||||||||
Plus:
|
|||||||||||||
53rd week interest payment 2022 Notes
|
-
|
14.7
|
|||||||||||
DSS integration capital expenditures
|
3.5
|
-
|
|||||||||||
Acquisition and integration cash costs
|
5.2
|
32.2
|
|||||||||||
Cash collateral
|
1
|
-
|
29.4
|
||||||||||
Adjusted Free Cash Flow
|
$
|
71.6
|
$
|
80.2
|
2
|
||||||||
For the Year Ended
|
|||||||||||||
January 2, 2016
|
January 3, 2015
|
||||||||||||
Net cash provided by operating activities
|
$
|
254.6
|
$
|
56.7
|
|||||||||
Less: Additions to property, plant & equipment
|
(110.8
|
)
|
(46.7
|
)
|
|||||||||
Free Cash Flow
|
$
|
143.8
|
$
|
10.0
|
|||||||||
Plus:
|
|||||||||||||
Bond redemption cash costs
|
-
|
20.8
|
|||||||||||
53rd week interest payment 2022 Notes
|
-
|
14.7
|
|||||||||||
DSS integration capital expenditures
|
5.3
|
-
|
|||||||||||
Acquisition and integration cash costs
|
13.9
|
32.2
|
|||||||||||
Cash collateral
|
1
|
(29.4
|
)
|
29.4
|
|||||||||
Adjusted Free Cash Flow
|
$
|
133.6
|
$
|
107.1
|
2
|
||||||||
1
In connection with the DSS Acquisition, $29.4 million was required to cash collateralize certain DSS self-insurance programs. The $29.4 million was funded with borrowings against our ABL facility, and the cash collateral is included within prepaid and other current assets on our Consolidated Balance Sheet at January 3, 2015. Subsequent to January 3, 2015 additional letters of credit were issued from our available ABL facility capacity, and the cash collateral was returned to the Company, which was used to repay a portion of our outstanding ABL facility.
|
|||||||||||||
2
2014 includes $5.6 million of DSS's free cash flow from the acquisition date.
|
COTT CORPORATION
|
EXHIBIT 8
|
|||||||||||||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED NET INCOME
1
|
||||||||||||||||||
(in millions of U.S. dollars, except share and per share amounts)
|
||||||||||||||||||
Unaudited
|
||||||||||||||||||
For the Three Months Ended
|
For the Year Ended
|
|||||||||||||||||
January 2, 2016
|
January 3, 2015
|
January 2, 2016
|
January 3, 2015
|
|||||||||||||||
Net (loss) income attributed to Cott Corporation
|
$
|
(4.4
|
)
|
$
|
18.7
|
$
|
(3.4
|
)
|
$
|
10.0
|
||||||||
Restructuring and asset impairments, net of tax
|
-
|
(0.2
|
)
|
-
|
3.0
|
|||||||||||||
Bond redemption and other financing costs, net of tax
|
-
|
(9.4
|
)
|
-
|
15.8
|
|||||||||||||
Facility reorganization costs, net of tax
|
1.9
|
-
|
1.9
|
-
|
||||||||||||||
Acquisition and integration costs, net of tax
|
3.3
|
23.4
|
13.1
|
26.3
|
||||||||||||||
Purchase accounting adjustments, net of tax
|
-
|
-
|
2.6
|
1.0
|
||||||||||||||
Unrealized commodity hedging loss (gain), net of tax
|
-
|
0.8
|
(0.8
|
)
|
0.8
|
|||||||||||||
Unrealized foreign exchange and other losses (gains), net of tax
|
0.2
|
(1.7
|
)
|
(8.0
|
)
|
(0.3
|
)
|
|||||||||||
Foreign exchange impact on redemption of preferred shares
|
-
|
-
|
12.0
|
-
|
||||||||||||||
Loss on disposal of property, plant & equipment, net of tax
|
2.8
|
1.7
|
4.5
|
2.1
|
||||||||||||||
Other adjustments, net of tax
|
(0.8
|
)
|
1.0
|
1.1
|
(1.6
|
)
|
||||||||||||
Adjusted net income attributed to Cott Corporation
|
$
|
3.0
|
$
|
34.3
|
$
|
23.0
|
$
|
57.1
|
||||||||||
Adjusted net income per common share attributed to Cott Corporation
|
||||||||||||||||||
Basic
|
$
|
0.03
|
$
|
0.37
|
$
|
0.22
|
$
|
0.61
|
||||||||||
Diluted
|
$
|
0.03
|
$
|
0.37
|
$
|
0.22
|
$
|
0.60
|
||||||||||
Weighted average outstanding shares (millions) attributed to Cott Corporation
|
||||||||||||||||||
Basic
|
109.7
|
93.0
|
103.0
|
93.8
|
||||||||||||||
Diluted
|
110.5
|
93.8
|
2
|
103.7
|
94.8
|
2
|
||||||||||||
1
Adjustments are tax effected based on the statutory tax rate within the applicable tax jurisdiction.
|
||||||||||||||||||
2
Adjusted to exclude dilutive effect of convertible preferred shares.
|
COTT CORPORATION - DS SERVICES
|
EXHIBIT 9
|
|||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED REVENUES
|
||||||||
(in millions of U.S. dollars)
|
||||||||
Unaudited
|
||||||||
Pro forma
|
||||||||
For the Three Months Ended
|
For the Three Months Ended
|
|||||||
January 2, 2016
|
January 3, 2015
|
|||||||
Revenue, net
|
$
|
255.7
|
$
|
236.5
|
||||
Energy surcharge adjustment
1
|
$
|
2.5
|
||||||
2015 four additional shipping days
|
$
|
(12.5
|
)
|
|||||
Adjusted Revenue, net
|
$
|
245.7
|
$
|
236.5
|
||||
Adjusted Revenue, net growth vs. Pro forma
|
3.9
|
%
|
||||||
Pro forma
|
||||||||
For the Year Ended
|
For the Year Ended
|
|||||||
January 2, 2016
|
January 3, 2015
|
|||||||
Revenue, net
|
$
|
1,021.1
|
$
|
978.2
|
||||
Energy surcharge adjustment
1
|
$
|
8.0
|
||||||
Deferred revenue adjustment
2
|
$
|
0.9
|
||||||
2015 four additional shipping days
|
$
|
(12.5
|
)
|
|||||
Adjusted Revenue, net
|
$
|
1,017.5
|
$
|
978.2
|
||||
Adjusted Revenue, net growth vs. Pro forma
|
4.0
|
%
|
||||||
1
Represents the impact of the energy fuel surcharge on current year operations assuming prior year's pro forma average rate.
|
||||||||
2
2015 measurement period adjustment.
|
COTT CORPORATION
|
EXHIBIT 10
|
||||
SUPPLEMENTARY INFORMATION - NON-GAAP - LEVERAGE
|
|||||
(in millions of U.S. dollars)
|
|||||
Unaudited
|
|||||
January 2, 2016
|
|||||
Adjusted EBITDA
|
$
|
357.0
|
|||
Total debt
|
$
|
1,650.8
|
|||
Less: Cash
|
(77.1
|
)
|
|||
Net Debt
|
$
|
1,573.7
|
|||
Leverage (Net Debt / Adjusted EBITDA)
|
4.41
|