Cott Corporation (NYSE: COT) (TSX: BCB) today announced its results
for the fiscal year and fourth quarter ended December 31, 2011.
(All information in U.S. dollars; all fiscal year 2011
comparisons are relative to the fiscal year 2010; all fourth
quarter 2011 comparisons are relative to the fourth quarter of
2010. Certain terms used in this press release are defined
below.)
Fiscal Year 2011
- Revenue increased 29% to $2,335 million compared to $1,803
million. Excluding the impact of the Cliffstar acquisition and
foreign exchange, revenue increased 7%. The Cliffstar business,
which was acquired during the third quarter of 2010, contributed
$386 million of the increase in revenue.
- Operating income was $101 million compared to $99 million.
Adjusted operating income was $123 million compared to $124
million.
- Net income and earnings per diluted share were $38 million and
$0.40, respectively, compared to $55 million and $0.63,
respectively. Adjusted net income and adjusted earnings per diluted
share were $54 million and $0.57, respectively, compared to $58
million and $0.68, respectively.
- EBITDA was $193 million compared to $189 million. Adjusted
EBITDA increased 5% to $199 million compared to $189 million.
- Free cash flow was $115 million off of net cash provided by
operating activities of $164 million.
Fourth Quarter 2011
- Revenue increased 4% to $549 million compared to $529
million.
- Operating income was $4 million compared to $15 million.
Adjusted operating income was $14 million compared to $26
million.
- Net loss and loss per diluted share were $12 million and $0.12,
respectively, compared to net income and earnings per diluted share
of $15 million and $0.16, respectively. Adjusted net loss and
adjusted loss per diluted share were $5 million and $0.05,
respectively, compared to adjusted net income and adjusted earnings
per diluted share of $8 million and $0.08, respectively.
- EBITDA was $27 million compared to $59 million. Adjusted EBITDA
was $32 million compared to $46 million.
"2011 saw us experience a solid increase in volume and revenue
as well as deliver another year of significant cash generation,"
commented Jerry Fowden, Cott's Chief Executive Officer. "Margins
were lower primarily due to significantly higher commodity costs,
especially resin," continued Mr. Fowden.
FISCAL YEAR 2011 PERFORMANCE SUMMARY
- Filled beverage case volume increased 15% (5% excluding
Cliffstar) driven by higher volumes in North America, the United
Kingdom / Europe ("U.K.") and Mexico.
- Revenue increased 29% (7% excluding Cliffstar and the impact of
foreign exchange). Increased revenues were driven by a combination
of higher volumes and higher pricing in North America and the U.K.
The U.K. also benefited from continued favorable product mix.
- Gross profit as a percentage of revenue was 11.8% compared to
14.8%. The decline in gross profit as a percentage of revenue was
attributable primarily to the adverse impact of higher commodity
costs such as resin, and to a lesser degree unfavorable product mix
in North America.
- Selling, general and administrative ("SG&A") expenses were
$173 million (7% as a percentage of revenue) compared to $167
million (9% as a percentage of revenue). The increase in SG&A
was driven by the full year inclusion of Cliffstar.
- Operating income was $101 million compared to $99 million.
Adjusted operating income was $123 million compared to $124
million.
- EBITDA was $193 million compared to $189 million. Adjusted
EBITDA increased 5% to $199 million compared to $189 million.
- Free cash flow was $115 million off of net cash provided by
operating activities of $164 million.
FISCAL YEAR 2011 REPORTING SEGMENT
HIGHLIGHTS
- North America filled beverage case volume increased 18% (4%
excluding Cliffstar) to 728 million cases. Revenue increased 33% to
$1,809 million. Excluding the impact of the Cliffstar acquisition
and foreign exchange, revenue increased 4%. Operating income was
$70 million.
- U.K. filled beverage case volume increased 9% to 195 million
cases. Revenue increased 22% (18% excluding the impact of foreign
exchange) to $448 million, primarily driven by ongoing growth in
the energy and sports isotonic categories. Operating income was $28
million.
- Mexico filled beverage case volume increased 6% to 37 million
cases. Revenue increased 3% (1% excluding the impact of foreign
exchange) to $52 million.
- RCI concentrate volume declined 13% to 259 million cases.
Revenue declined 11% to $26 million.
FOURTH QUARTER 2011 PERFORMANCE
SUMMARY
- Filled beverage case volume increased 1% driven primarily by
higher volumes in the U.K.
- Revenue increased 4%. Increased revenues were driven by higher
volumes in the U.K. which benefited from continued favorable
product mix.
- Gross profit as a percentage of revenue was 9.4% compared to
13.0%. The decline in gross profit as a percentage of revenue was
attributable primarily to the continued adverse impact of higher
commodity costs such as resin.
- SG&A expenses were $44 million (8% as a percentage of
revenue) compared to $53 million (10% as a percentage of revenue).
The decrease in SG&A expenses was driven by reduced integration
and acquisition costs, lower employee-related costs related to
bonus and incentives and decreased information technology
expenses.
- Operating income was $4 million compared to $15 million.
Adjusted operating income was $14 million compared to $26
million.
- EBITDA was $27 million compared to $59 million. Adjusted EBITDA
was $32 million compared to $46 million.
FOURTH QUARTER 2011 REPORTING SEGMENT
HIGHLIGHTS
- North America filled beverage case volume decreased 2% to 170
million cases. Revenue was flat at $421 million.
- U.K. filled beverage case volume increased 14% to 49 million
cases. Revenue increased 24% (25% excluding the impact of foreign
exchange) to $111 million, primarily driven by ongoing growth in
the energy and sports isotonic categories.
- Mexico filled beverage case volume was flat. Revenue decreased
3% (increased 6% excluding the impact of foreign exchange) to $12
million.
- RCI concentrate volume declined 11% to 55 million cases.
Revenue declined 7% to $6 million.
Fiscal Year and Fourth Quarter Results
Conference Call Cott Corporation will host a conference call
today, February 17, 2012, at 10:00 a.m. EST, to discuss fiscal year
and fourth quarter results, which can be accessed as follows:
North America: (877) 407-8031 International: (201) 689-8031
A live audio webcast will be available through Cott's website at
http://www.cott.com. The earnings conference call will be recorded
and archived for playback on the investor relations section of the
website for a period of two weeks following the event.
About Cott Corporation Cott is one of the
world's largest beverage companies focusing on private label and
contract manufacturing. With approximately 4,000 employees, Cott
operates soft drink, juice, water and other beverage bottling
facilities in the United States, Canada, the U.K. and Mexico. Cott
markets beverage concentrates in over 50 countries around the
world.
Defined Terms Certain defined terms used
in this press release include the following. "GAAP" means U.S.
generally accepted accounting principles. "Adjusted operating
income" means GAAP operating income excluding Cliffstar purchase
accounting adjustments, integration expenses, restructuring and
asset impairments. "EBITDA" means GAAP earnings (loss) before
interest, taxes, depreciation and amortization. "Adjusted EBITDA"
means GAAP earnings (loss) before interest, taxes, depreciation and
amortization, excluding purchase accounting adjustments,
integration expenses, restructuring and asset impairments.
"Adjusted net income (loss)" means GAAP net income (loss),
excluding purchase accounting adjustments, integration expenses,
restructuring and asset impairments. "Adjusted net income (loss)
per diluted share" means GAAP net income (loss) per diluted share,
excluding purchase accounting adjustments, integration expenses,
restructuring and asset impairments. "Free cash flow" means GAAP
net cash provided by operating activities less capital
expenditures. See the accompanying reconciliation of Cott's
adjusted operating income to its GAAP operating income, Cott's
EBITDA and Adjusted EBITDA to its GAAP net income (loss), Cott's
adjusted net income (loss) to its GAAP net income (loss), Cott's
adjusted net income (loss) per diluted share to its GAAP net income
(loss) per diluted share, and Cott's free cash flow to its GAAP net
cash provided by operating activities, as well as the "Non-GAAP
Measures" paragraph below.
Non-GAAP Measures Cott supplements its
reporting of revenue determined in accordance with GAAP by
excluding the impact of foreign exchange to separate the impact of
currency exchange rate changes from Cott's results of operations
and, in some cases, by excluding the impact of the Cliffstar
acquisition. Cott supplements its reporting of net income,
operating income and earnings per diluted share in accordance with
GAAP and its reporting of earnings before interest, taxes,
depreciation and amortization by excluding Cliffstar purchase
accounting adjustments, integration expenses, restructuring and
asset impairments to separate the impact of these items from the
underlying business. Because Cott uses these adjusted financial
results in the management of its business and to understand
business performance independent of the Cliffstar acquisition,
management believes this supplemental information is useful to
investors for their independent evaluation and understanding of
Cott's underlying business performance and the performance of its
management. Additionally, Cott supplements its reporting of net
cash provided by operating activities determined in accordance with
GAAP by excluding capital expenditures, which management believes
provides useful information to investors about the amount of cash
generated by the business that, after the acquisition of property
and equipment, can be used for strategic opportunities, including
investing in our business, making strategic acquisitions, and
strengthening the balance sheet. The non-GAAP financial measures
described above are in addition to, and not meant to be considered
superior to, or a substitute for, Cott's financial statements
prepared in accordance with GAAP. In addition, the non-GAAP
financial measures included in this earnings announcement reflect
management's judgment of particular items, and may be different
from, and therefore may not be comparable to, similarly titled
measures reported by other companies.
Safe Harbor Statements This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 conveying management's expectations as to the
future based on plans, estimates and projections at the time Cott
makes the statements. Forward-looking statements involve inherent
risks and uncertainties and Cott cautions you that a number of
important factors could cause actual results to differ materially
from those contained in any such forward-looking statement. The
forward-looking statements contained in this press release include,
but are not limited to, statements related to future financial
operating results and related matters. The forward-looking
statements are based on assumptions regarding management's current
plans and estimates. Management believes these assumptions to be
reasonable but there is no assurance that they will prove to be
accurate.
Factors that could cause actual results to differ materially
from those described in this press release include, among others:
Cott's ability to compete successfully; changes in consumer tastes
and preferences for existing products and Cott's ability to develop
and timely launch new products that appeal to such changing
consumer tastes and preferences; a loss of or reduction in business
with key customers, particularly Wal-Mart; fluctuations in
commodity prices and Cott's ability to pass on increased costs to
its customers, and the impact of those increased prices on Cott's
volumes; Cott's ability to manage its operations successfully;
currency fluctuations that adversely affect the exchange between
the U.S. dollar and the pound sterling, the Euro, the Canadian
dollar, the Mexican peso and other currencies; Cott's ability to
maintain favorable arrangements and relationships with its
suppliers; Cott's ability to realize the expected benefits of the
Cliffstar acquisition because of integration difficulties and other
challenges; risks associated with the asset purchase agreement in
connection with the Cliffstar acquisition; the significant amount
of Cott's outstanding debt and Cott's ability to meet its
obligations under its debt agreements; Cott's ability to maintain
compliance with the covenants and conditions under its debt
agreements; fluctuations in interest rates; credit rating changes;
the impact of global financial events on Cott's financial results;
Cott's ability to fully realize the expected cost savings and/or
operating efficiencies from its restructuring activities; any
disruption to production at Cott's beverage concentrates or other
manufacturing facilities; Cott's ability to protect its
intellectual property; compliance with product health and safety
standards; liability for injury or illness caused by the
consumption of contaminated products; liability and damage to
Cott's reputation as a result of litigation or legal proceedings;
changes in the legal and regulatory environment in which Cott
operates; the impact of proposed taxes on soda and other sugary
drinks; enforcement of compliance with the Ontario Environmental
Protection Act; unseasonably cold or wet weather, which could
reduce the demand for Cott's beverages; the impact of national,
regional and global events, including those of a political,
economic, business and competitive nature; Cott's ability to
recruit, retain, and integrate new management and a new management
structure; Cott's exposure to intangible asset risk; Cott's ability
to renew its collective bargaining agreements on satisfactory
terms; disruptions in Cott's information systems; compliance with
product health and safety standards; liability for injury or
illness caused by the consumption of contaminated products; the
volatility of Cott's stock price; and Cott's ability to maintain
compliance with the listing requirements of the New York Stock
Exchange.
The foregoing list of factors is not exhaustive. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Readers are
urged to carefully review and consider the various disclosures,
including but not limited to risk factors contained in Cott's
Annual Report on Form 10-K for the fiscal year ended January 1,
2011 and its quarterly reports on Form 10-Q, as well as other
periodic reports filed with the securities commissions. Cott does
not undertake to update or revise any of these statements in light
of new information or future events, except as expressly required
by applicable law.
Website: www.cott.com
COTT CORPORATION EXHIBIT 1
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of U.S. dollars, except share and per share amounts, U.S.
GAAP)
Unaudited
For the Three Months
Ended For the Years Ended
------------------------ ------------------------
December 31, January 1, December 31, January 1,
2011 2011 2011 2011
------------ ---------- ------------ ----------
Revenue, net $ 549.2 $ 528.8 $ 2,334.6 $ 1,803.3
Cost of sales 497.8 460.3 2,058.0 1,537.0
------------ ---------- ------------ ----------
Gross profit 51.4 68.5 276.6 266.3
Selling, general and
administrative expenses 44.4 52.5 172.7 166.7
Loss on disposal of
property, plant &
equipment 0.7 0.7 1.2 1.1
Restructuring and asset
impairments
Restructuring - - - (0.5)
Asset impairments 0.6 - 0.6 -
Intangible asset
impairments 1.4 - 1.4 -
------------ ---------- ------------ ----------
Operating income 4.3 15.3 100.7 99.0
Contingent consideration
earn-out adjustment - (20.3) 0.9 (20.3)
Other expense, net 1.0 0.4 2.2 4.0
Interest expense, net 13.7 14.3 57.1 36.9
------------ ---------- ------------ ----------
(Loss) income before
income taxes (10.4) 20.9 40.5 78.4
Income tax expense
(benefit) 1.0 4.7 (0.7) 18.6
------------ ---------- ------------ ----------
Net (loss) income $ (11.4) $ 16.2 $ 41.2 $ 59.8
Less: Net income
attributable to non-
controlling interests 0.5 1.1 3.6 5.1
------------ ---------- ------------ ----------
Net (loss) income
attributed to Cott
Corporation $ (11.9) $ 15.1 $ 37.6 $ 54.7
============ ========== ============ ==========
Net (loss) income per common share attributed to Cott Corporation
Basic $ (0.13) $ 0.16 $ 0.40 $ 0.64
Diluted $ (0.12) $ 0.16 $ 0.40 $ 0.63
Weighted average outstanding shares (millions) attributed to Cott
Corporation
Basic 94.4 93.9 94.2 85.6
Diluted 95.4 95.2 95.0 86.2
COTT CORPORATION EXHIBIT 2
CONSOLIDATED BALANCE SHEETS
(in millions of U.S. dollars, except share amounts, U.S. GAAP)
Unaudited
------------ ------------
December 31, January 1,
2011 2011
------------ ------------
ASSETS
Current assets
Cash & cash equivalents $ 100.9 $ 48.2
Accounts receivable, net of allowance of $9.0
($8.3 as of January 1, 2011) 210.8 213.6
Income taxes recoverable 9.9 0.3
Inventories 210.0 215.5
Prepaid expenses and other current assets 19.3 32.7
------------ ------------
Total current assets 550.9 510.3
Property, plant & equipment 482.2 503.8
Goodwill 129.6 130.2
Intangibles and other assets 341.1 371.1
Deferred income taxes 4.1 2.5
Other tax receivable 1.0 11.3
------------ ------------
Total assets $ 1,508.9 $ 1,529.2
============ ============
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings $ - $ 7.9
Current maturities of long-term debt 3.4 6.0
Contingent consideration earn-out - 32.2
Accounts payable and accrued liabilities 281.1 276.6
------------ ------------
Total current liabilities 284.5 322.7
Long-term debt 602.1 605.5
Deferred income taxes 34.1 43.6
Other long-term liabilities 20.0 22.2
------------ ------------
Total liabilities 940.7 994.0
Equity
Capital stock, no par - 95,101,230 (January 1,
2011 - 94,750,120) shares issued 395.9 395.6
Treasury stock (2.1) (3.2)
Additional paid-in-capital 42.6 40.8
Retained earnings 144.1 106.5
Accumulated other comprehensive loss (24.7) (17.5)
------------ ------------
Total Cott Corporation equity 555.8 522.2
Non-controlling interests 12.4 13.0
------------ ------------
Total equity 568.2 535.2
------------ ------------
Total liabilities and equity $ 1,508.9 $ 1,529.2
============ ============
COTT CORPORATION EXHIBIT 3
Consolidated Statements of Cash Flows
(in millions of U.S. dollars, U.S. GAAP)
Unaudited
For the Three Months
Ended For the Years Ended
------------------------ ------------------------
December 31, January 1, December 31, January 1,
2011 2011 2011 2011
------------ ---------- ------------ ----------
Operating Activities
Net (loss) income $ (11.4) $ 16.2 $ 41.2 $ 59.8
Depreciation &
amortization 23.9 24.1 95.3 74.0
Amortization of
financing fees 1.0 1.1 3.9 2.7
Share-based
compensation expense 0.7 1.9 2.9 4.7
(Decrease) increase in
deferred income taxes (1.4) 7.4 (3.7) 17.0
Write-off of financing
fees - - - 1.4
Loss on disposal of
property, plant &
equipment 0.7 0.7 1.2 1.1
Loss on buyback of
Notes - - - 0.1
Asset impairments 0.6 - 0.6 -
Intangible asset
impairments 1.4 - 1.4 -
Contingent
consideration earn-
out adjustment - (20.3) - (20.3)
Contract termination
charge - 4.0 - 3.6
Contract termination
payments - - (3.1) (5.4)
Other non-cash items 3.2 1.2 4.9 5.5
Change in operating
assets and
liabilities, net of
acquisition:
Accounts receivable 36.5 22.5 (5.0) (3.9)
Inventories 6.1 (7.9) 6.5 (28.4)
Prepaid expenses and
other current
assets 4.9 0.7 5.8 2.6
Other assets (0.9) (0.5) (0.7) (1.6)
Accounts payable and
accrued liabilities 34.4 23.7 11.5 39.8
Income taxes
recoverable 4.2 (1.4) 0.8 25.7
------------ ---------- ------------ ----------
Net cash provided
by operating
activities 103.9 73.4 163.5 178.4
------------ ---------- ------------ ----------
Investing Activities
Acquisition (8.6) - (34.3) (507.7)
Additions to property,
plant & equipment (17.4) (14.5) (48.8) (44.0)
Additions to
intangibles and other
assets (1.8) (0.6) (5.7) (4.2)
Proceeds from sale of
property, plant &
equipment 0.3 0.3 0.4 1.2
Other investing
activities - - (1.8) -
------------ ---------- ------------ ----------
Net cash used in
investing
activities (27.5) (14.8) (90.2) (554.7)
------------ ---------- ------------ ----------
Financing Activities
Payments of long-term
debt (1.6) (1.4) (6.8) (18.7)
Issuance of long-term
debt - - - 375.0
Borrowings under ABL - 58.8 224.1 366.5
Payments under ABL - (101.2) (231.9) (379.0)
Distributions to non-
controlling interests (1.8) (1.9) (6.0) (7.4)
Issuance of common
shares, net of
offering fees - - - 71.1
Exercise of options - - 0.3 -
Financing fees 0.1 - - (14.2)
------------ ---------- ------------ ----------
Net cash (used in)
provided by
financing
activities (3.3) (45.7) (20.3) 393.3
------------ ---------- ------------ ----------
Effect of exchange rate
changes on cash (0.4) (0.1) (0.3) 0.3
------------ ---------- ------------ ----------
Net increase in cash &
cash equivalents 72.7 12.8 52.7 17.3
Cash & cash equivalents,
beginning of period 28.2 35.4 48.2 30.9
------------ ---------- ------------ ----------
Cash & cash equivalents,
end of period $ 100.9 $ 48.2 $ 100.9 $ 48.2
============ ========== ============ ==========
COTT CORPORATION EXHIBIT 4
SEGMENT INFORMATION
(in millions of U.S. dollars, U.S. GAAP)
Unaudited
For the Three Months
Ended For the Years Ended
------------------------ ------------------------
December 31, January 1, December 31, January 1,
2011 2011 2011 2011
------------ ---------- ------------ ----------
Revenue
North America $ 421.1 $ 421.5 $ 1,809.3 $ 1,357.3
United Kingdom 111.1 89.6 447.9 367.1
Mexico 11.5 11.8 51.8 50.1
RCI 5.5 5.9 25.6 28.8
------------ ---------- ------------ ----------
$ 549.2 $ 528.8 $ 2,334.6 $ 1,803.3
============ ========== ============ ==========
Operating income (loss)
North America $ (0.2) $ 11.3 $ 70.4 $ 75.0
United Kingdom 4.8 5.5 27.5 24.5
Mexico (1.4) (2.3) (4.4) (7.5)
RCI 1.1 0.8 7.2 7.0
------------ ---------- ------------ ----------
$ 4.3 $ 15.3 $ 100.7 $ 99.0
============ ========== ============ ==========
Volume - 8 oz equivalent
cases - Total Beverage
(including concentrate)
North America 188.4 191.5 808.7 697.0
United Kingdom 51.7 45.2 209.0 192.9
Mexico 8.2 8.2 37.1 34.9
RCI 55.1 61.7 259.4 298.6
------------ ---------- ------------ ----------
303.4 306.6 1,314.2 1,223.4
============ ========== ============ ==========
Volume - 8 oz equivalent
cases - Filled Beverage
North America 170.3 173.3 727.6 618.6
United Kingdom 48.9 42.9 194.7 178.2
Mexico 8.2 8.2 37.1 34.9
RCI - - - 0.1
------------ ---------- ------------ ----------
227.4 224.4 959.4 831.8
============ ========== ============ ==========
COTT CORPORATION EXHIBIT 5
SUPPLEMENTARY INFORMATION - NON-GAAP - Analysis of Revenue by Reporting
Segment
Unaudited
For the Three Months Ended
-------------------------------------------
December 31, 2011
-------------------------------------------
(in millions of U.S. dollars, North United
except percentage amounts) Cott(1) America Kingdom Mexico RCI
------- ------- ------- ------- -------
Change in revenue $ 20.4 $ (0.4) $ 21.5 $ (0.3) $ (0.4)
Impact of foreign exchange(2) 1.9 0.4 0.5 1.0 -
------- ------- ------- ------- -------
Change excluding foreign
exchange $ 22.3 $ (0.0) $ 22.0 $ 0.7 $ (0.4)
------- ------- ------- ------- -------
Percentage change in revenue 4% 0% 24% -3% -7%
------- ------- ------- ------- -------
Percentage change in revenue
excluding foreign exchange 4% 0% 25% 6% -7%
------- ------- ------- ------- -------
For the Year Ended
-------------------------------------------
(in millions of U.S. dollars,
except percentage amounts) December 31, 2011
-------------------------------------------
North United
Cott(1) America Kingdom Mexico RCI
------- ------- ------- ------- -------
Change in revenue $ 531.3 $ 452.0 $ 80.8 $ 1.7 $ (3.2)
Impact of foreign exchange(2) (24.1) (7.5) (15.4) (1.2) -
------- ------- ------- ------- -------
Change excluding foreign
exchange $ 507.2 $ 444.5 $ 65.4 $ 0.5 $ (3.2)
------- ------- ------- ------- -------
Percentage change in revenue 29% 33% 22% 3% -11%
------- ------- ------- ------- -------
Percentage change in revenue
excluding foreign exchange 28% 33% 18% 1% -11%
------- ------- ------- ------- -------
Impact of Cliffstar
Acquisition (385.6) (385.6) - - -
------- ------- ------- ------- -------
Change excluding foreign
exchange and Cliffstar
Acquisition $ 121.6 $ 58.9 $ 65.4 $ 0.5 $ (3.2)
------- ------- ------- ------- -------
Percentage change in revenue
excluding foreign exchange
and Cliffstar Acquisition 7% 4% 18% 1% -11%
------- ------- ------- ------- -------
(1) Cott includes the following reporting segments: North America, United
Kingdom, Mexico and RCI.
(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 Years Ended
------------------------ ------------------------
December 31, January 1, December 31, January 1,
2011 2011 2011 2011
------------ ---------- ------------ ----------
Net (loss) income
attributed to Cott
Corporation $ (11.9) $ 15.1 $ 37.6 $ 54.7
Interest expense, net 13.7 14.3 57.1 36.9
Income tax expense
(benefit) 1.0 4.7 (0.7) 18.6
Depreciation &
amortization 23.9 24.1 95.3 74.0
Net income attributable
to non-controlling
interests 0.5 1.1 3.6 5.1
------------ ---------- ------------ ----------
EBITDA $ 27.2 $ 59.3 $ 192.9 $ 189.3
Restructuring and asset
impairments
Restructuring - - - (0.5)
Asset impairments 0.6 - 0.6 -
Intangible asset
impairments 1.4 - 1.4 -
Acquisition adjustments
Earnout adjustment - (20.3) 0.9 (20.3)
Inventory step-up
(step-down) 0.3 1.0 (3.5) 5.2
Transaction costs - (0.3) - 7.2
Write-off of financing
fees - - - 1.4
Integration costs 0.8 6.1 3.8 6.7
Legal accrual 2.1 - 2.9 -
------------ ---------- ------------ ----------
Adjusted EBITDA $ 32.4 $ 45.8 $ 199.0 $ 189.0
============ ========== ============ ==========
COTT CORPORATION EXHIBIT 7
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED OPERATING INCOME
(in millions of U.S. dollars)
Unaudited
For the Three Months
Ended For the Years Ended
------------------------ ------------------------
December 31, January 1, December 31, January 1,
2011 2011 2011 2011
------------ ---------- ------------ ----------
Operating income $ 4.3 $ 15.3 $ 100.7 $ 99.0
Restructuring and asset
impairments
Restructuring - - - (0.5)
Asset impairments 0.6 - 0.6 -
Intangible asset
impairments 1.4 - 1.4 -
Acquisition adjustments
Inventory step-up
(step-down) 0.3 1.0 (3.5) 5.2
Transaction costs - (0.3) - 7.2
Incremental
amortization 4.2 4.2 16.8 6.4
Integration costs 0.8 6.1 3.8 6.7
Legal accrual 2.1 - 2.9 -
------------ ---------- ------------ ----------
Adjusted operating
income $ 13.7 $ 26.3 $ 122.7 $ 124.0
============ ========== ============ ==========
COTT CORPORATION EXHIBIT 8
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED EARNINGS PER DILUTED SHARE
(EPS)
(in millions of U.S. dollars, except share and per share amounts)
Unaudited
For the Three Months
Ended For the Years Ended
------------------------ ------------------------
December 31, January 1, December 31, January 1,
2011 2011 2011 2011
------------ ---------- ------------ ----------
Net (loss) income $ (11.4) $ 16.2 $ 41.2 $ 59.8
Less: Net income
attributable to non-
controlling interests 0.5 1.1 3.6 5.1
------------ ---------- ------------ ----------
Net (loss) income
attributed to Cott
Corporation $ (11.9) $ 15.1 $ 37.6 $ 54.7
============ ========== ============ ==========
Restructuring and asset
impairments, net of tax
Restructuring - - - (0.4)
Asset impairments 0.5 - 0.5 -
Intangible asset
impairments 1.1 - 1.1 -
Acquisition adjustments,
net of tax
Earnout adjustment - (15.7) 0.7 (15.7)
Inventory step-up
(step-down) 0.2 0.8 (2.8) 4.0
Incremental
amortization 3.4 3.3 13.4 5.0
Transaction costs - (0.2) - 5.6
Write-off of financing
fees - - - 1.1
Integration costs 0.6 4.7 3.0 5.2
Legal accrual 1.7 - 2.3 -
Income tax adjustments
Adjustment to reserves (0.4) (0.4) (1.5) (1.1)
------------ ---------- ------------ ----------
Adjusted net (loss)
income attributed to
Cott Corporation $ (4.8) $ 7.6 $ 54.3 $ 58.4
============ ========== ============ ==========
Adjusted net (loss)
income per common share
attributed to Cott
Corporation
Basic $ (0.05) $ 0.08 $ 0.58 $ 0.68
Diluted $ (0.05) $ 0.08 $ 0.57 $ 0.68
Weighted average
outstanding shares
(millions) attributed
to Cott Corporation
Basic 94.4 93.9 94.2 85.6
Diluted 95.4 95.2 95.0 86.2
COTT CORPORATION EXHIBIT 9
SUPPLEMENTARY INFORMATION - NON-GAAP - Analysis of Volume by Reporting
Segments
Unaudited
For the Three Months Ended
-------------------------------------------
December 31, 2011
-------------------------------------------
(in millions of 8 oz.
equivalent cases, except North United
percentage amounts) Cott(1) America Kingdom Mexico RCI
------- ------- ------- ------- -------
Change in filled beverage
volume 3.0 (3.0) 6.0 - -
Impact of Cliffstar
Acquisition - - - - -
------- ------- ------- ------- -------
Change excluding Cliffstar
Acquisition 3.0 (3.0) 6.0 - -
------- ------- ------- ------- -------
Percentage change in filled
beverage volume 1% -2% 14% 0% 0%
------- ------- ------- ------- -------
Percentage change in filled
beverage volume excluding
Cliffstar Acquisition 1% -2% 14% 0% 0%
------- ------- ------- ------- -------
For the Year Ended
-------------------------------------------
December 31, 2011
-------------------------------------------
(in millions of 8 oz.
equivalent cases, except North United
percentage amounts) Cott(1) America Kingdom Mexico RCI
------- ------- ------- ------- -------
Change in filled beverage
volume 127.6 109.0 16.5 2.2 (0.1)
Impact of Cliffstar
Acquisition (83.9) (83.9) - - -
------- ------- ------- ------- -------
Change excluding Cliffstar
Acquisition 43.7 25.1 16.5 2.2 (0.1)
------- ------- ------- ------- -------
Percentage change in filled
beverage volume 15% 18% 9% 6% -100%
------- ------- ------- ------- -------
Percentage change in filled
beverage volume excluding
Cliffstar Acquisition 5% 4% 9% 6% -100%
------- ------- ------- ------- -------
(1) Cott includes the following reporting segments: North America, United
Kingdom, Mexico and RCI.
COTT CORPORATION EXHIBIT 10
SUPPLEMENTARY INFORMATION - NON-GAAP - Free Cash Flow
(in millions of U.S. dollars)
Unaudited
For the
Three Months For Year
Ended Ended
------------ ------------
December 31, December 31,
2011 2011
------------ ------------
Net cash provided by operating activities $ 103.9 $ 163.5
Less: Capital expenditures 17.4 48.8
------------ ------------
Free Cash Flow $ 86.5 $ 114.7
============ ============
CONTACT: Michael C. Massi Investor Relations Tel: (813)
313-1786 Email Contact
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