Cott Reports Fourth Quarter and Fiscal 2013 Results and Declares
Dividend
(Unless stated otherwise, all fourth quarter 2013 comparisons
are relative to the fourth quarter of 2012 and all fiscal year 2013
comparisons are relative to fiscal year 2012; all information is in
U.S. dollars. Certain terms used in this press release are defined
below.)
TORONTO, ON and TAMPA, FL--(Marketwired - Feb 12, 2014) - Cott
Corporation (NYSE: COT) (TSX: BCB) today announced its results for
the fourth quarter and fiscal year ended December 28, 2013 and the
declaration of a quarterly dividend of CAD$0.06 per common
share.
Fourth Quarter 2013
Results
- The Company returned approximately $5 million to shareholders
through its quarterly dividends.
- The Company redeemed $200 million of its Senior Notes due in
2017 on November 15, 2013 (recognizing an expense of $12.7 million
associated with the redemption) and announced the redemption of the
remaining $15 million of the Senior Notes due in 2017 to occur on
February 19, 2014.
- Revenue of $482 million was lower by 7% (7% excluding the
impact of foreign exchange) compared to $517 million.
- Gross profit as a percentage of revenue was 11.2% compared to
11.7%.
- Selling, general and administrative ("SG&A") expenses of
$39.5 million were lower by 9% compared to $43.6 million.
- Adjusted net income and adjusted earnings per diluted share
were $2.8 million and $0.03, respectively, compared to $3.2 million
and $0.03 in the prior year, respectively. Reported loss and
loss per diluted share were $11.5 million and $0.12, respectively,
compared to reported net income and earnings per diluted share of
$2.3 million and $0.02, respectively, in the prior year, due
primarily to recognizing $12.7 million of expense associated with
the redemption of the 2017 Senior Notes.
- Adjusted EBITDA was $42.5 million compared to $42.5
million. Reported EBITDA was $27.8 million compared to $41.6
million.
- Free cash flow was $81.4 million, reflecting $92.3 million of
net cash provided by operating activities less $10.9 million of
capital expenditures. Excluding the impact of the redemption
of the Senior Notes due in 2017, free cash flow was $89.6
million.
Fiscal Year 2013
Results
- The Company returned approximately $32 million to shareholders
through quarterly dividends and stock repurchases.
- Revenue of $2,094 million was lower by 7% (7% excluding the
impact of foreign exchange) compared to $2,251 million.
- Gross profit as a percentage of revenue was 12.0% compared to
12.9%.
- SG&A expenses of $160 million were lower by 10% compared to
$178 million.
- Adjusted net income and adjusted earnings per diluted share
were $36.3 million and $0.38, respectively, compared to $51.9
million and $0.55 in the prior year, respectively. Reported
net income and earnings per diluted share were $17.0 million and
$0.18, respectively, compared to $47.8 million and $0.50,
respectively, in the prior year.
- Adjusted EBITDA was $197 million compared to $213
million. Reported EBITDA was $177 million compared to $209
million.
- Free cash flow was $100 million, reflecting $155 million of net
cash provided by operating activities less $55 million of capital
expenditures. Excluding the impact of the redemption of the
Senior Notes due in 2017, free cash flow was $108 million.
"The fourth quarter of 2013 and the year as a whole were
challenging for Cott," commented Jerry Fowden, Cott's Chief
Executive Officer. "The overall carbonated soft drink market and
the shelf stable juice market declined during the year, which
alongside increased national brand promotional activity and deep
price discounting adversely affected our volumes. Despite
these pressures we continued to run our business tightly, reducing
our SG&A costs and delivering $100 million of free cash flow,"
continued Mr. Fowden.
FOURTH QUARTER 2013 PERFORMANCE SUMMARY
- Total filled beverage case volume (which excludes concentrate
sales) was 180 million cases compared to 199 million
cases. The volume decline was due primarily to the general
market decline in the North American carbonated soft drink ("CSD")
category, prolonged aggressive promotional activity from the
national brands in North America as well as the exiting of case
pack water.
- Revenue was lower by 7% (7% excluding the impact of foreign
exchange) at $482 million. The revenue decline was due
primarily to lower global volumes slightly offset by an increase in
average price per case on a global basis.
- Gross profit as a percentage of revenue was 11.2% compared to
11.7%. The gross margin reduction was due primarily to lower
global volumes which resulted in unfavorable fixed cost
absorption.
- SG&A expenses were lower by 9% at $39.5 million compared to
$43.6 million. The decrease in SG&A was due primarily to lower
employee-related costs as well as lower professional
fees.
- Loss before income taxes was $10.5 million compared to income
before taxes of $2.5 million.
- Income tax benefit was $0.1 million compared to $0.9
million.
- Adjusted net income and adjusted earnings per diluted share
were $2.8 million and $0.03, respectively, compared to $3.2 million
and $0.03 in the prior year, respectively. Reported net loss
and loss per diluted share were $11.5 million and $0.12,
respectively, compared to reported net income and earnings per
diluted share of $2.3 million and $0.02, respectively, in the prior
year. The difference between reported net income and adjusted net
income was due primarily to recognizing $12.7 million of expense
associated with the redemption of the 2017 Senior Notes.
- Adjusted EBITDA was $42.5 million compared to $42.5
million. Reported EBITDA was $27.8 million compared to $41.6
million.
- Free cash flow was $81.4 million, reflecting $92.3 million of
net cash provided by operating activities less $10.9 million of
capital expenditures. Excluding the impact of the redemption
of the Senior Notes due in 2017, free cash flow was $89.6
million.
FOURTH QUARTER 2013 REPORTING SEGMENT HIGHLIGHTS
- North America filled beverage case volume was 129 million cases
compared to 146 million cases and revenue was lower by 11% at $341
million due primarily to the general market decline in the North
American CSD category, prolonged aggressive promotional activity
from the national brands as well as the exiting of case pack
water.
- United Kingdom / Europe ("UK") filled beverage case volume was
48 million cases compared to 46 million cases. Revenue was
higher by 8% (7% excluding the impact of foreign exchange) at $126
million, due primarily to additional revenues from the Calypso Soft
Drinks business acquired in the second quarter of 2013.
- All Other total beverage case volume (including concentrate)
was 65 million cases compared to 65 million cases. Our All
Other reporting segment includes our Mexico operating segment,
Royal Crown International operating segment and other miscellaneous
expenses (prior year information has been updated to reflect this
change in our reporting segments). Revenue was lower by 6%, due to
the exiting of low gross margin business in Mexico, partially
offset by increased higher margin contract manufacturing customers
as well as new customers at RCI. Mexico total beverage case
volume was 3 million cases compared to 7 million
cases. Revenue in Mexico was lower by 49% (48% excluding the
impact of foreign exchange) at $5 million due primarily to the
exiting of low gross margin business. RCI total beverage case
volume (including concentrate) was 62 million cases compared to 58
million cases. Revenue increased 62% primarily due to new customers
as well as favorable changes in the product mix sold.
FISCAL YEAR 2013 PERFORMANCE SUMMARY
- Total filled beverage case volume (excluding concentrate sales)
was 793 million cases compared to 867 million cases. The
volume decline was due primarily to the general market decline in
the North American CSD category, prolonged aggressive promotional
activity from the national brands in North America as well as the
exiting of case pack water.
- Revenue was lower by 7% (7% excluding the impact of foreign
exchange) at $2,094 million. The revenue decline was due
primarily to lower global volumes slightly offset by an increase in
average price per case on a global basis.
- Gross profit as a percentage of revenue was 12.0% compared to
12.9%. The gross margin reduction was due primarily to lower
global volumes which resulted in unfavorable fixed cost
absorption.
- SG&A expenses were lower by 10% at $160 million compared to
$178 million. The decrease in SG&A was due primarily to lower
employee-related and reduced information technology
costs.
- Income before income taxes was $24.2 million compared to $56.9
million.
- Income tax expense was $2.2 million compared to $4.6 million,
due primarily to a reduction in pretax income.
- Adjusted net income and adjusted earnings per diluted share
were $36.3 million and $0.38, respectively, compared to $51.9
million and $0.55 in the prior year, respectively. Reported
net income and earnings per diluted share were $17.0 million and
$0.18, respectively, compared to $47.8 million and $0.50,
respectively, in the prior year.
- Adjusted EBITDA was $197 million compared to $213
million. Reported EBITDA was $177 million compared to $209
million, due primarily to costs related to the redemption of the
Senior Notes due in 2017.
- Free cash flow was $100 million, reflecting $155 million of net
cash provided by operating activities less $55 million of capital
expenditures. Excluding the impact of the redemption of the
Senior Notes due in 2017, free cash flow was $108 million.
FISCAL YEAR 2013 REPORTING SEGMENT HIGHLIGHTS
- North America filled beverage case volume was 581 million cases
compared to 652 million cases and revenue was lower by 10% at
$1,535 million due primarily to the general market decline in the
North American CSD category, prolonged aggressive promotional
activity from the national brands as well as the exiting of case
pack water.
- U.K. filled beverage case volume was 194 million cases compared
to 190 million cases. Revenue was higher by 5% (6% excluding
the impact of foreign exchange) at $494 million, due primarily to
the additional revenues from the Calypso business.
- All Other total beverage case volume (including concentrate)
was 274 million cases compared to 304 million cases. Revenue
was lower by 8% at 65 million. Mexico total beverage case
volume (including concentrate) was 17 million cases compared to 26
million cases. Mexican revenue was lower by 29% (31% excluding
the impact of foreign exchange) at $28 million due primarily to the
exiting of low gross margin business, partially offset by increased
higher margin contract manufacturing. RCI total beverage case
volume (including concentrate) was 257 million cases compared to
278 million cases. Revenue increased 18% due primarily to new
customers as well as product mix.
Declaration of
Dividend
Cott has declared a dividend of CAD $0.06 per common share,
payable in cash on March 28, 2014 to shareowners of record at the
close of business on March 11, 2014.
Fourth Quarter and
Fiscal Year 2013 Results Conference Call Cott will host a
conference call today, February 12, 2014, at 10:00 a.m. EST, to
discuss fourth quarter and fiscal year 2013 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 producers of
beverages on behalf of retailers, brand owners and
distributors. Cott produces multiple types of beverages in a
variety of packaging formats and sizes, including carbonated soft
drinks, 100% shelf stable juice and juice-based products, clear,
still and sparkling flavored waters, energy drinks, sports
products, new age beverages, and ready-to-drink teas, as well as
alcoholic beverages for brand owners. Cott's large
manufacturing footprint, substantial research and development
capability and high level of quality and customer service enables
Cott to offer its customers a strong value-added proposition of low
cost, high quality products. With approximately 4,000
employees, Cott operates manufacturing facilities in the United
States, Canada, the United Kingdom and Mexico. Cott also
develops and manufactures beverage concentrates, which it exports
to approximately 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. "Total filled beverage case volume" means 24 eight
ounce equivalent servings per case. "Adjusted Net Income
(Loss)" means GAAP earnings (loss) excluding purchase accounting
adjustments, integration expenses, restructuring expenses and bond
redemption costs. "Adjusted Earnings Per Diluted Share" means
Adjusted Net Income divided by diluted weighted average outstanding
shares. "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 expenses and bond redemption
costs. See the accompanying reconciliations of these non-GAAP
measures to the corresponding GAAP measures, as well as the
"Non-GAAP Measures" paragraph below.
Non-GAAP
Measures To supplement its reporting of financial measures
determined in accordance with GAAP, Cott utilizes certain non-GAAP
financial measures. Cott excludes from GAAP revenue the impact
of foreign exchange to separate the impact of currency exchange
rate changes from Cott's results of operations. Cott utilizes
Adjusted Net Income, Adjusted Earnings Per Diluted Share, EBITDA
and Adjusted EBITDA to separate the impact of certain items from
the underlying business. Because Cott uses these adjusted
financial results in the management of its business, 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 to present free cash
flow, 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, paying dividends, 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 our capital
deployment strategy, future financial and operating trends and
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:
our ability to compete successfully; changes in consumer tastes and
preferences for existing products and our 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 Walmart; fluctuations in commodity prices
and our ability to pass on increased costs to our customers, and
the impact of those increased prices on our volumes; our ability to
manage our operations successfully; currency fluctuations that
adversely affect the exchange between the U.S. dollar and the
British pound sterling, the Euro, the Canadian dollar, the Mexican
peso and other currencies; our ability to maintain favorable
arrangements and relationships with our suppliers; the significant
amount of our outstanding debt and our ability to meet our
obligations under our debt agreements; our ability to maintain
compliance with the covenants and conditions under our debt
agreements; fluctuations in interest rates; credit rating changes;
the impact of global financial events on our financial results; our
ability to fully realize the expected cost savings and/or operating
efficiencies from our restructuring activities; any disruption to
production at our beverage concentrates or other manufacturing
facilities; our ability to protect our 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 our reputation as a result of
litigation or legal proceedings; changes in the legal and
regulatory environment in which we operate; the impact
of 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
our beverages; the impact of national, regional and global events,
including those of a political, economic, business and competitive
nature; our ability to recruit, retain, and integrate new
management; our exposure to intangible asset risk; our ability to
renew our collective bargaining agreements on satisfactory terms;
disruptions in our information systems; and the volatility of our
stock price.
The foregoing list of factors is not exhaustive. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date hereof. Readers are
urged to carefully review and consider the various disclosures,
including but not limited to risk factors contained in Cott's
Annual Report on Form 10-K 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
|
|
|
|
EXHIBIT 1 |
|
COTT CORPORATION |
|
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 Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
|
December 28, 2013 |
|
December 29, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net |
|
$ |
481.6 |
|
|
$ |
517.2 |
|
|
$ |
2,094.0 |
|
$ |
2,250.6 |
|
Cost of sales |
|
|
427.6 |
|
|
|
456.6 |
|
|
|
1,842.0 |
|
|
1,961.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
54.0 |
|
|
|
60.6 |
|
|
|
252.0 |
|
|
289.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
39.5 |
|
|
|
43.6 |
|
|
|
160.4 |
|
|
178.0 |
|
Loss on disposal of property, plant &
equipment |
|
|
(0.4 |
) |
|
|
0.1 |
|
|
|
1.0 |
|
|
1.8 |
|
Restructuring |
|
|
- |
|
|
|
- |
|
|
|
2.0 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
14.9 |
|
|
|
16.9 |
|
|
|
88.6 |
|
|
109.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration earn-out adjustment |
|
|
- |
|
|
|
0.6 |
|
|
|
- |
|
|
0.6 |
|
Other expense (income), net |
|
|
13.2 |
|
|
|
0.2 |
|
|
|
12.8 |
|
|
(2.0 |
) |
Interest expense, net |
|
|
12.2 |
|
|
|
13.6 |
|
|
|
51.6 |
|
|
54.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes |
|
|
(10.5 |
) |
|
|
2.5 |
|
|
|
24.2 |
|
|
56.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
|
(0.1 |
) |
|
|
(0.9 |
) |
|
|
2.2 |
|
|
4.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(10.4 |
) |
|
$ |
3.4 |
|
|
$ |
22.0 |
|
$ |
52.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to non-controlling
interests |
|
|
1.1 |
|
|
|
1.1 |
|
|
|
5.0 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributed to Cott Corporation |
|
$ |
(11.5 |
) |
|
$ |
2.3 |
|
|
$ |
17.0 |
|
$ |
47.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share attributed to Cott
Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.12 |
) |
|
$ |
0.02 |
|
|
$ |
0.18 |
|
$ |
0.51 |
|
|
Diluted |
|
$ |
(0.12 |
) |
|
$ |
0.02 |
|
|
$ |
0.18 |
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average outstanding shares (millions)
attributed to Cott Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
94.2 |
|
|
|
94.8 |
|
|
|
94.8 |
|
|
94.6 |
|
|
Diluted |
|
|
94.2 |
|
|
|
95.2 |
|
|
|
95.6 |
|
|
94.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT 2 |
|
COTT CORPORATION |
|
CONSOLIDATED BALANCE SHEETS |
|
(in millions of U.S. dollars, except share amounts,
U.S. GAAP) |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash
& cash equivalents |
|
$ |
47.2 |
|
|
$ |
179.4 |
|
Accounts receivable, net of allowance |
|
|
204.4 |
|
|
|
199.4 |
|
Income taxes recoverable |
|
|
1.1 |
|
|
|
1.2 |
|
Inventories |
|
|
233.1 |
|
|
|
224.8 |
|
Prepaid expenses and other assets |
|
|
19.3 |
|
|
|
20.3 |
|
|
|
|
|
|
|
|
|
|
Total
current assets |
|
|
505.1 |
|
|
|
625.1 |
|
|
|
|
|
|
|
|
|
|
Property, plant & equipment, net |
|
|
483.7 |
|
|
|
490.9 |
|
Goodwill |
|
|
137.3 |
|
|
|
130.3 |
|
Intangibles and other assets, net |
|
|
296.2 |
|
|
|
315.4 |
|
Deferred income taxes |
|
|
3.6 |
|
|
|
3.3 |
|
Other
tax receivable |
|
|
0.2 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,426.1 |
|
|
$ |
1,565.9 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
$ |
50.8 |
|
|
$ |
- |
|
Current maturities of long-term debt |
|
|
3.9 |
|
|
|
1.9 |
|
Accounts payable and accrued liabilities |
|
|
298.2 |
|
|
|
287.7 |
|
|
|
|
|
|
|
|
|
|
Total
current liabilities |
|
|
352.9 |
|
|
|
289.6 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
403.5 |
|
|
|
601.8 |
|
Deferred income taxes |
|
|
41.5 |
|
|
|
39.1 |
|
Other
long-term liabilities |
|
|
22.3 |
|
|
|
12.5 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
820.2 |
|
|
|
943.0 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Capital stock, no par - 94,238,190 (December 29, 2012 - 95,371,484)
shares issued |
|
|
392.8 |
|
|
|
397.8 |
|
Additional paid-in-capital |
|
|
44.1 |
|
|
|
40.4 |
|
Retained earnings |
|
|
176.3 |
|
|
|
186.0 |
|
Accumulated other comprehensive loss |
|
|
(16.8 |
) |
|
|
(12.4 |
) |
Total
Cott Corporation equity |
|
|
596.4 |
|
|
|
611.8 |
|
Non-controlling interests |
|
|
9.5 |
|
|
|
11.1 |
|
|
|
|
|
|
|
|
|
|
Total
equity |
|
|
605.9 |
|
|
|
622.9 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and equity |
|
$ |
1,426.1 |
|
|
$ |
1,565.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT 3 |
COTT CORPORATION |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in millions of U.S. dollars) |
Unaudited |
|
|
|
For the Three Months Ended |
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
December 28, 2013 |
|
December 29, 2012 |
|
December 28, 2013 |
|
December 29, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(10.4) |
|
$ |
3.4 |
|
$ |
22.0 |
|
$ |
52.3 |
|
Depreciation & amortization |
|
|
26.1 |
|
|
25.5 |
|
|
100.8 |
|
|
97.7 |
|
Amortization of financing fees |
|
|
0.6 |
|
|
0.8 |
|
|
2.8 |
|
|
3.7 |
|
Share-based compensation expense |
|
|
0.4 |
|
|
1.4 |
|
|
4.0 |
|
|
4.9 |
|
(Decrease) increase in deferred income taxes |
|
|
(1.0) |
|
|
(0.8) |
|
|
0.9 |
|
|
3.8 |
|
Write-off of financing fees and discount |
|
|
4.0 |
|
|
- |
|
|
4.0 |
|
|
- |
|
Gain on bargain purchase |
|
|
- |
|
|
- |
|
|
- |
|
|
(0.9) |
|
(Gain) loss on disposal of property, plant &
equipment |
|
|
(0.4) |
|
|
0.1 |
|
|
1.0 |
|
|
1.8 |
|
Other non-cash items |
|
|
0.7 |
|
|
0.4 |
|
|
0.9 |
|
|
(0.4) |
|
Change in operating assets and liabilities, net of
acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
52.7 |
|
|
51.8 |
|
|
13.9 |
|
|
15.0 |
|
|
Inventories |
|
|
(16.8) |
|
|
(6.2) |
|
|
(1.0) |
|
|
(12.1) |
|
|
Prepaid expenses and other current assets |
|
|
0.7 |
|
|
5.2 |
|
|
(1.3) |
|
|
(0.3) |
|
|
Other assets |
|
|
0.1 |
|
|
0.2 |
|
|
6.1 |
|
|
0.9 |
|
|
Accounts payable and accrued liabilities, and other
liabilities |
|
|
34.3 |
|
|
36.2 |
|
|
(0.6) |
|
|
(2.2) |
|
|
Income taxes recoverable |
|
|
1.3 |
|
|
2.0 |
|
|
1.7 |
|
|
8.8 |
|
|
|
Net
cash provided by operating activities |
|
|
92.3 |
|
|
120.0 |
|
|
155.2 |
|
|
173.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition, net of cash received |
|
|
- |
|
|
- |
|
|
(11.2) |
|
|
(9.7) |
|
Additions to property, plant & equipment |
|
|
(10.9) |
|
|
(19.1) |
|
|
(55.6) |
|
|
(69.7) |
|
Additions to intangibles and other assets |
|
|
(1.9) |
|
|
(0.5) |
|
|
(5.9) |
|
|
(5.2) |
|
Proceeds from sale of property, plant &
equipment |
|
|
- |
|
|
- |
|
|
0.2 |
|
|
2.3 |
|
Proceeds from insurance recoveries |
|
|
0.2 |
|
|
0.2 |
|
|
0.6 |
|
|
1.9 |
|
Other investing activities |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
Net
cash used in investing activities |
|
|
(12.6) |
|
|
(19.4) |
|
|
(71.9) |
|
|
(80.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments of long-term debt |
|
|
(200.6) |
|
|
(0.5) |
|
|
(220.8) |
|
|
(3.3) |
|
Borrowings under ABL |
|
|
131.9 |
|
|
- |
|
|
131.9 |
|
|
24.5 |
|
Payments under ABL |
|
|
(82.1) |
|
|
- |
|
|
(82.1) |
|
|
(24.5) |
|
Distributions to non-controlling interests |
|
|
(1.6) |
|
|
(2.3) |
|
|
(6.6) |
|
|
(5.6) |
|
Common shares repurchased and cancelled |
|
|
(0.1) |
|
|
- |
|
|
(13.0) |
|
|
(0.3) |
|
Dividends to shareholders |
|
|
(5.2) |
|
|
(5.8) |
|
|
(21.9) |
|
|
(5.8) |
|
Financing fees |
|
|
(0.7) |
|
|
- |
|
|
(0.8) |
|
|
(1.2) |
|
|
|
Net
cash used in financing activities |
|
|
(158.4) |
|
|
(8.6) |
|
|
(213.3) |
|
|
(16.2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
0.1 |
|
|
(0.7) |
|
|
(2.2) |
|
|
2.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash & cash
equivalents |
|
|
(78.6) |
|
|
91.3 |
|
|
(132.2) |
|
|
78.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & cash equivalents, beginning of period |
|
|
125.8 |
|
|
88.1 |
|
|
179.4 |
|
|
100.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & cash equivalents, end of period |
|
$ |
47.2 |
|
$ |
179.4 |
|
$ |
47.2 |
|
$ |
179.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT 4 |
|
COTT CORPORATION |
|
SEGMENT INFORMATION |
|
(in millions of U.S. dollars or 8 oz equivalent cases,
U.S. GAAP) |
|
Unaudited |
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
For the Year Ended |
|
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
340.6 |
|
|
$ |
384.3 |
|
|
$ |
1,535.2 |
|
|
$ |
1,707.4 |
|
|
United Kingdom |
|
|
126.1 |
|
|
|
117.0 |
|
|
|
494.3 |
|
|
|
473.2 |
|
|
All Other |
|
|
14.9 |
|
|
|
15.9 |
|
|
|
64.5 |
|
|
|
70.0 |
|
Total |
|
$ |
481.6 |
|
|
$ |
517.2 |
|
|
$ |
2,094.0 |
|
|
$ |
2,250.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
9.4 |
|
|
$ |
13.9 |
|
|
$ |
67.5 |
|
|
$ |
90.4 |
|
|
United Kingdom |
|
|
7.0 |
|
|
|
5.6 |
|
|
|
25.6 |
|
|
|
27.1 |
|
|
All Other |
|
|
1.4 |
|
|
|
0.4 |
|
|
|
7.2 |
|
|
|
4.3 |
|
|
Corporate |
|
|
(2.9 |
) |
|
|
(3.0 |
) |
|
|
(11.7 |
) |
|
|
(12.1 |
) |
Total |
|
$ |
14.9 |
|
|
$ |
16.9 |
|
|
$ |
88.6 |
|
|
$ |
109.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume - 8 oz equivalent cases - Total Beverage
(including concentrate) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
147.5 |
|
|
|
165.3 |
|
|
|
660.4 |
|
|
|
739.2 |
|
|
United Kingdom |
|
|
51.3 |
|
|
|
49.6 |
|
|
|
208.7 |
|
|
|
204.1 |
|
|
All Other |
|
|
65.1 |
|
|
|
64.6 |
|
|
|
274.1 |
|
|
|
303.8 |
|
Total |
|
|
263.9 |
|
|
|
279.5 |
|
|
|
1,143.2 |
|
|
|
1,247.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume - 8 oz equivalent cases - Filled Beverage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
129.2 |
|
|
|
145.9 |
|
|
|
580.6 |
|
|
|
651.5 |
|
|
United Kingdom |
|
|
47.7 |
|
|
|
46.4 |
|
|
|
193.6 |
|
|
|
189.5 |
|
|
All Other |
|
|
3.5 |
|
|
|
6.7 |
|
|
|
18.6 |
|
|
|
26.0 |
|
Total |
|
|
180.4 |
|
|
|
199.0 |
|
|
|
792.8 |
|
|
|
867.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT 5 |
|
COTT CORPORATION |
|
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) |
|
December 28, 2013 |
|
|
|
Cott1 |
|
|
North America |
|
|
United Kingdom |
|
|
All Other |
|
Change in revenue |
|
$ |
(35.6 |
) |
|
$ |
(43.7 |
) |
|
$ |
9.1 |
|
|
$ |
(1.0 |
) |
Impact of foreign exchange2 |
|
|
1.6 |
|
|
|
2.4 |
|
|
|
(0.9 |
) |
|
|
0.1 |
|
Change excluding foreign exchange |
|
$ |
(34.0 |
) |
|
$ |
(41.3 |
) |
|
$ |
8.2 |
|
|
$ |
(0.9 |
) |
Percentage change in revenue |
|
|
-6.9 |
% |
|
|
-11.4 |
% |
|
|
7.8 |
% |
|
|
-6.3 |
% |
Percentage change in revenue excluding foreign exchange |
|
|
-6.6 |
% |
|
|
-10.7 |
% |
|
|
7.0 |
% |
|
|
-5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
(in millions of U.S. dollars, except percentage
amounts) |
|
December 28, 2013 |
|
|
|
Cott1 |
|
|
North America |
|
|
United Kingdom |
|
|
All Other |
|
Change in revenue |
|
$ |
(156.6 |
) |
|
$ |
(172.2 |
) |
|
$ |
21.1 |
|
|
$ |
(5.5 |
) |
Impact of foreign exchange2 |
|
|
10.8 |
|
|
|
5.3 |
|
|
|
6.4 |
|
|
|
(0.9 |
) |
Change excluding foreign exchange |
|
$ |
(145.8 |
) |
|
$ |
(166.9 |
) |
|
$ |
27.5 |
|
|
$ |
(6.4 |
) |
Percentage change in revenue |
|
|
-7.0 |
% |
|
|
-10.1 |
% |
|
|
4.5 |
% |
|
|
-7.9 |
% |
Percentage change in revenue excluding foreign exchange |
|
|
-6.5 |
% |
|
|
-9.8 |
% |
|
|
5.8 |
% |
|
|
-9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Cott includes the following reporting
segments: North America, United Kingdom 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. |
|
|
|
|
|
|
EXHIBIT 6 |
COTT CORPORATION |
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 |
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
|
December 28, 2013 |
|
December 29, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributed to Cott Corporation |
|
$ |
(11.5 |
) |
|
$ |
2.3 |
|
|
$ |
17.0 |
|
$ |
47.8 |
Interest expense, net |
|
|
12.2 |
|
|
|
13.6 |
|
|
|
51.6 |
|
|
54.2 |
Income tax (benefit) expense |
|
|
(0.1 |
) |
|
|
(0.9 |
) |
|
|
2.2 |
|
|
4.6 |
Depreciation & amortization |
|
|
26.1 |
|
|
|
25.5 |
|
|
|
100.8 |
|
|
97.7 |
Net income attributable to non-controlling
interests |
|
|
1.1 |
|
|
|
1.1 |
|
|
|
5.0 |
|
|
4.5 |
EBITDA |
|
$ |
27.8 |
|
|
$ |
41.6 |
|
|
$ |
176.6 |
|
$ |
208.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
- |
|
|
|
- |
|
|
|
2.0 |
|
|
- |
Tax reorganization and regulatory costs |
|
|
0.9 |
|
|
|
- |
|
|
|
1.4 |
|
|
- |
Bond redemption |
|
|
12.7 |
|
|
|
- |
|
|
|
12.7 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnout adjustment |
|
|
- |
|
|
|
0.6 |
|
|
|
- |
|
|
0.6 |
|
Integration and acquisition costs |
|
|
1.1 |
|
|
|
0.3 |
|
|
|
4.1 |
|
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
42.5 |
|
|
$ |
42.5 |
|
|
$ |
196.8 |
|
$ |
212.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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EXHIBIT 7 |
|
COTT CORPORATION |
|
SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH
FLOW |
|
(in millions of U.S. dollars) |
|
Unaudited |
|
|
|
|
|
For the Three Months Ended |
|
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
92.3 |
|
|
$ |
120.0 |
|
|
Less:
Capital expenditures |
|
|
(10.9 |
) |
|
|
(19.1 |
) |
Free Cash Flow |
|
$ |
81.4 |
|
|
$ |
100.9 |
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
155.2 |
|
|
$ |
173.0 |
|
|
Less:
Capital expenditures |
|
|
(55.6 |
) |
|
|
(69.7 |
) |
Free Cash Flow |
|
$ |
99.6 |
|
|
$ |
103.3 |
|
|
|
|
|
|
|
|
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EXHIBIT 8 |
COTT CORPORATION |
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED NET
INCOME |
(in millions of U.S. dollars, except share and per
share amounts) |
Unaudited |
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
December 28, 2013 |
|
|
December 29, 2012 |
|
December 28, 2013 |
|
December 29, 2012 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributed to Cott Corporation |
|
$ |
(11.5 |
) |
|
$ |
2.3 |
|
$ |
17.0 |
|
$ |
47.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, net of tax |
|
|
(0.1 |
) |
|
|
- |
|
|
1.8 |
|
|
- |
Tax reorganization and regulatory costs, net of
tax |
|
|
0.9 |
|
|
|
- |
|
|
1.4 |
|
|
- |
Bond redemption costs, net of tax |
|
|
12.7 |
|
|
|
- |
|
|
12.7 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition adjustments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnout adjustment |
|
|
- |
|
|
|
0.6 |
|
|
- |
|
|
0.6 |
|
Integration and acquisition costs |
|
|
0.8 |
|
|
|
0.3 |
|
|
3.4 |
|
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributed to Cott Corporation |
|
$ |
2.8 |
|
|
$ |
3.2 |
|
$ |
36.3 |
|
$ |
51.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per common share attributed to Cott
Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
$ |
0.38 |
|
$ |
0.55 |
|
Diluted |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
$ |
0.38 |
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average outstanding shares (millions)
attributed to Cott Corporation |
|
|
|
|
|
|
|
Basic |
|
|
94.2 |
|
|
|
94.8 |
|
|
94.8 |
|
|
94.6 |
|
Diluted |
|
|
94.9 |
|
|
|
95.2 |
|
|
95.6 |
|
|
94.8 |
CONTACT: Robert
Meyer Investor Relations Tel: (813) 313-1777 Email Contact
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