UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 3, 2017
Cott
Corporation
(Exact name of registrant as specified in its charter)
Canada |
001-31410 |
98-0154711 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer
Identification No.) |
6525 Viscount Road
Mississauga, Ontario, Canada |
L4V1H6 |
|
|
Corporate Center III
Suite 400, 4221 W. Boy Scout Blvd.
Tampa, Florida
|
33607 |
(Address of
principal executive offices) |
(Zip Code) |
(905) 672-1900 |
(813) 313-1800 |
(Registrant’s telephone number, including area code) |
N/A |
(Former name or former address, if changed since last report) |
Check the appropriate
box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Indicate by check mark whether the registrant is an
emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On August 3, 2017, Cott Corporation (the “Company”)
issued a press release reporting financial results for the fiscal quarter ended July 1, 2017. A copy of the press release is furnished
herewith under the Securities Exchange Act of 1934, as amended, as Exhibit 99.1 to this Form 8-K and is incorporated by reference
into this Item 2.02 as if fully set forth herein.
Item 8.01. Other Events
On August 2, 2017, the Company announced that the Board
of Directors declared a dividend of US$0.06 per common share, payable in cash on September 6, 2017 to shareowners of record at
the close of business on August 23, 2017.
Item 9.01. |
Financial Statements and Exhibits. |
(d) Exhibits.
EXHIBIT NUMBER |
|
DESCRIPTION |
|
|
|
99.1 |
|
Press Release of Cott Corporation, dated August 3, 2017 (furnished herewith). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
|
Cott Corporation
(Registrant) |
August 3, 2017 |
By: /s/ Marni Morgan Poe
Marni Morgan Poe
Vice President, General Counsel and Secretary |
|
|
Exhibit 99.1
Cott Reports Second Quarter 2017 Results
(Unless stated otherwise, all second quarter 2017 comparisons
are relative to the second quarter of 2016; all information is in U.S. dollars.)
TORONTO and TAMPA, FL, Aug. 3, 2017 /CNW/ - Cott Corporation
(NYSE:COT; TSX:BCB) today announced its results for the second quarter ended July 1, 2017.
SECOND QUARTER 2017 HIGHLIGHTS
| · | On July 25, 2017, Cott announced the signing of a
definitive agreement to sell its traditional manufacturing business to Refresco Group N.V. for $1.25 billion. The transaction includes
Cott's traditional North America, U.K. and Mexico businesses but excludes the RCI International division and its associated concentrate
facility as well as the Aimia Foods division in the U.K. This transaction is expected to close in the second half of 2017 and the
proceeds will be used to repay indebtedness and reduce overall leverage. |
| · | Revenue increased 33% to $1,014 million compared to
$765 million. |
| · | Gross profit increased 36% to $342 million compared
to $253 million and gross margin as a percentage of revenue increased to 33.8% compared to 33.0%. |
| · | Net cash provided by operating activities of $105
million less $40 million of capital expenditures resulted in reported free cash flow of $65 million and adjusted free cash flow
of $71 million (adjusted for acquisition, integration, and other cash costs) compared to adjusted free cash flow of $55 million
in the prior year, representing a $16 million or 29% improvement. |
"I am pleased with the performance of our water
and coffee solutions segment during the quarter as we continued to see top and bottom line growth. S&D Coffee
and Tea and Eden Springs are both tracking ahead of their acquisition models and we are on track with our DS Services
2017 revenue and EBITDA improvement plan. As I look forward, I am excited about the opportunities that lie ahead to grow our
water and coffee solutions businesses given the reduced leverage we will have following the announced transaction to sell
our traditional business," commented Jerry Fowden, Cott's Chief Executive Officer. "As
we progress towards the closing of the sale of our traditional business, our motto is business as usual and it was good to see
an improved top line in our traditional business during the quarter, especially in the U.K.," continued Mr. Fowden.
SECOND QUARTER 2017 GLOBAL PERFORMANCE
| · | Revenue was $1,014 million despite $18 million of
foreign exchange headwinds. Revenue increased 33% (35% on a foreign exchange neutral basis) driven primarily by the additions of
S&D Coffee and Tea ("S&D") and Eden Springs ("Eden") as well as growth at DS Services, offset in part
by the adverse foreign exchange impact and mix shift within the traditional business. |
| · | Gross profit increased 36% to $342 million, driven
primarily by the addition of Eden and S&D, offset in part by the negative impact of foreign exchange rates and operational
factors within our traditional business. Gross margin as a percentage of revenue increased to 33.8% compared to 33.0%. |
| · | Income tax expense was $1 million compared to income
tax benefit of $2 million as a result of placing valuation allowances against North American net operating losses. |
| · | Reported net loss and net loss per diluted share were
$25 million and $0.18, respectively, compared to reported net income and net income per diluted share of $7 million and $0.06,
respectively. Adjusted net income and adjusted net income per diluted share (including adjustments for acquisition, integration,
debt redemption and other costs) were $9 million and $0.06, respectively, compared to adjusted net income and adjusted net income
per diluted share of $19 million and $0.15, respectively. |
| · | Reported EBITDA was $82 million compared to $87 million
in the prior year due primarily to net debt refinancing and redemption costs of $19 million. Adjusted EBITDA increased 13% to $122
million due primarily to the improved contributions from our water and coffee solutions segment, offset in part by $6 million of
adverse foreign exchange headwinds and other operational factors within our traditional business. |
| · | Net cash provided by operating activities of $105
million less $40 million of capital expenditures resulted in free cash flow of $65 million and adjusted free cash flow of $71 million
(adjusted for acquisition, integration, and other cash costs) compared to adjusted free cash flow of $55 million in the prior year,
representing a $16 million or 29% improvement. |
SECOND QUARTER 2017 REPORTING SEGMENT PERFORMANCE
Water and Coffee Solutions
| · | Revenue increased 95% to $539 million driven primarily
by the additions of S&D and Eden alongside continued revenue growth at DS Services. A detailed breakdown is tabulated below.
Gross profit increased 64% to $280 million from $171 million due primarily to the additions of Eden and S&D. |
Water & Coffee Solutions |
Revenue Bridge |
2016 Q2 Revenue |
|
|
|
$ |
275.7 |
S&D |
|
|
|
153.5 |
Eden |
|
|
|
104.0 |
DS Services |
|
|
|
|
|
Price/Mix |
|
|
|
8.2 |
|
Returnable volume |
|
|
|
1.8 |
|
Other |
|
|
|
(0.1) |
|
Canadian operations (1) |
|
|
|
(1.1) |
|
OCS/HOD PET/Retail |
|
|
|
(3.1) |
2017 Q2 Revenue |
|
|
|
$ |
538.9 |
(1) Includes $0.6 million of unfavorable foreign exchange impact. |
| · | DS Services U.S. total customers grew approximately
2% and revenue increased approximately 3%. |
| · | Eden and S&D contributed $104 million and $154
million of revenue, respectively, in line with our acquisition models. Eden total customers grew approximately 2%. Integration
and synergy capture accelerated and is now tracking ahead of plan. S&D integration continues to track in line with plan
while revenues and coffee volume continue to track ahead of plan with 13% growth in coffee pounds. |
Traditional Business
| · | Cott North America reporting segment volume was up
2% in actual cases due primarily to 33% growth in contract manufacturing and 12% growth in value added and sparkling water products
which offset general market and private label declines in carbonated soft drinks and shelf stable juices. |
| · | Revenue was lower by 1% at $345 million due primarily
to ongoing product mix shifts within the business. |
Cott North America Revenue Bridge |
2016 Q2 Revenue |
|
|
|
|
$ |
349.2 |
Volume |
|
|
|
|
7.9 |
Foreign exchange impact |
|
|
|
|
(1.1) |
Price/Mix |
|
|
|
|
(11.0) |
2017 Q2 Revenue |
|
|
|
|
$ |
345.0 |
| · | Gross profit was $46 million or 13.7% of revenue compared
to $52 million or 15.1% of revenue due primarily to inventory timing and associated costs from an increase in maintenance and upgrades performed
on manufacturing lines during the period to improve efficiency and to better accommodate new business wins, as well as commodity
inflation and mix. |
| · | Cott U.K. reporting segment volume was ahead of expectations
and increased 1% in actual cases. |
| · | Revenue also exceeded expectations and while USD reported
revenue was lower by 6% relative to the prior year, local currency revenue increased by 6%. Details of the revenue drivers are
tabulated below. |
Cott U.K. Revenue Bridge |
2016 Q2 Revenue |
|
|
|
|
$ |
132.3 |
Price/Mix |
|
|
|
|
6.3 |
Volume |
|
|
|
|
1.7 |
Foreign exchange impact |
|
|
|
|
(15.8) |
2017 Q2 Revenue |
|
|
|
|
$ |
124.5 |
| · | Gross profit as a percentage of revenue was lower
at 9.0% due primarily to the adverse foreign exchange impact on commodity costs, the costs of a voluntary product withdrawal during
the quarter and mix. The agreed U.K. pricing changes were fully implemented by the end of the second quarter of 2017 and
are expected to offset the commodity cost increases caused by the weakness of the British pound. |
FREE CASH FLOW OUTLOOK
Our traditional manufacturing business will be accounted for
as an asset held for sale beginning in the third quarter and all of its results from operations will be presented as discontinued
operations and excluded from our continuing operating income and continuing operating cash flow. Until the sale
of the traditional manufacturing business closes and we use the proceeds to repay certain outstanding indebtedness, interest
expense associated with debt to be redeemed may be incorporated into our continuing operating results. This accounting
methodology will impact our 2017 and possibly 2018 reported results.
Assuming that the sale of our traditional manufacturing business
closes as expected, we are targeting full year 2019 cash flow provided by operations of approximately $265 to $270 million and
capital expenditures of $115 to $120 million, resulting in adjusted free cash flow of approximately $150 million (when excluding
acquisition, integration and other cash costs).
SECOND QUARTER 2017 RESULTS CONFERENCE CALL
Cott Corporation will host a conference call today, August
3, 2017, at 10:00 a.m. ET, to discuss second quarter results, which can be accessed as follows:
North America: (888) 231-8191
International: (647) 427-7450
Conference ID: 50669182
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 a diversified beverage company with a leading volume-based
national presence in the North America and European home and office bottled water delivery industry, a leader in custom coffee
roasting and blending of iced tea for the U.S. foodservice industry, and a leader in the production of beverages on behalf of retailers,
brand owners, and distributors. Our platform reaches over 2.3 million customers or delivery points across North America and
Europe supported by strategically located sales and distribution facilities and fleets, as well as wholesalers and distributors.
This enables us to efficiently service residences, businesses, restaurant chains, hotels and motels, small and large retailers,
and healthcare facilities.
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 this factor from Cott's
results of operations. Cott utilizes adjusted net income (loss), adjusted income (loss) per diluted share, and EBITDA and adjusted
EBITDA on a global basis 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 additions to property, plant and equipment to present free cash flow, and by excluding acquisition, integration, and
other cash costs to present adjusted 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
the use of proceeds in the sale of our traditional business to Refresco, the completion of the transaction on the terms proposed,
the anticipated timing of the transaction, the potential impact the acquisition will have on Cott and related matters, the execution
of our strategic priorities, 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 and Refresco's ability to complete the transaction on the
anticipated terms and schedule, including the ability to obtain Refresco shareholder and regulatory approvals; risks relating to
any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness,
financial condition, losses and future prospects; the risk that disruptions from the transaction will harm Cott's business; and
the effect of economic, competitive, legal, governmental and technological factors on Cott's business; our ability to compete successfully
in the markets in which we operate; 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 a reduction in business
in our traditional business with key customers, particularly Walmart; consolidation of retail customers; fluctuations in commodity
prices and our ability to pass on increased costs to our customers or hedge against such rising costs, and the impact of those
increased prices on our volumes; our ability to manage our operations successfully; our ability to fully realize the potential
benefit of acquisitions or other strategic opportunities that we pursue; our ability to realize the revenue and cost synergies
of recent acquisitions because of integration difficulties and other challenges; the limited nature of our indemnification rights
under the acquisition agreements for our recent acquisitions; the incurrence of substantial indebtedness to finance our recent
acquisitions; significant one-time transaction costs in connection with our recent acquisitions; our exposure to intangible asset
risk; 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; our substantial indebtedness and our ability to meet our obligations under our debt agreements, and risks of further
increases to our indebtedness; our ability to maintain compliance with the covenants and conditions under our debt agreements;
fluctuations in interest rates, which could increase our borrowing costs; 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 maintain access to our water sources; 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 proposed taxes on soda and other sugary drinks; enforcement of compliance with the Ontario Environmental Protection Act; the
seasonal nature of our business and the effect of adverse weather conditions; 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 ability to renew our collective bargaining agreements on satisfactory terms; disruptions in our information
systems; our ability to securely maintain our customers' confidential or credit card information, or other private data relating
to our employees or our company; our ability to maintain our quarterly dividend; our ability to adequately address the challenges
and risks associated with our international operations and address difficulties in complying with laws and regulations including
the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010; and our ability to use net operating losses to offset
future taxable income.
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 filings 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 Six Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
Revenue, net |
|
$ |
1,014.1 |
|
$ |
765.0 |
|
$ |
1,910.5 |
|
$ |
1,463.4 |
Cost of sales |
|
671.8 |
|
512.4 |
|
1,257.6 |
|
996.8 |
Gross profit |
|
342.3 |
|
252.6 |
|
652.9 |
|
466.6 |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
299.7 |
|
202.1 |
|
590.8 |
|
399.1 |
Loss on disposal of property, plant & equipment, net |
|
4.0 |
|
2.2 |
|
5.4 |
|
3.1 |
Acquisition and integration expenses |
|
8.0 |
|
11.7 |
|
15.3 |
|
13.1 |
Operating income |
|
30.6 |
|
36.6 |
|
41.4 |
|
51.3 |
|
|
|
|
|
|
|
|
|
Other expense, net |
|
18.2 |
|
3.0 |
|
26.6 |
|
0.8 |
Interest expense, net |
|
33.3 |
|
27.0 |
|
69.0 |
|
54.8 |
(Loss) income before income taxes |
|
(20.9) |
|
6.6 |
|
(54.2) |
|
(4.3) |
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
1.4 |
|
(2.3) |
|
2.5 |
|
(11.8) |
Net (loss) income |
|
$ |
(22.3) |
|
$ |
8.9 |
|
$ |
(56.7) |
|
$ |
7.5 |
|
|
|
|
|
|
|
|
|
Less: Net income attributable to non-controlling interests |
|
2.3 |
|
1.5 |
|
4.3 |
|
2.9 |
Net (loss) income attributed to Cott Corporation |
|
$ |
(24.6) |
|
$ |
7.4 |
|
$ |
(61.0) |
|
$ |
4.6 |
|
|
|
|
|
|
|
|
|
Net (loss) income per common share attributed |
|
|
|
|
|
|
|
|
to Cott Corporation |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.18) |
|
$ |
0.06 |
|
$ |
(0.44) |
|
$ |
0.04 |
|
Diluted |
|
$ |
(0.18) |
|
$ |
0.06 |
|
$ |
(0.44) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
Basic |
|
139.0 |
|
123.2 |
|
138.9 |
|
118.3 |
|
Diluted |
|
139.0 |
|
124.2 |
|
138.9 |
|
119.0 |
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
0.06 |
|
$ |
0.06 |
|
$ |
0.12 |
|
$ |
0.12 |
COTT CORPORATION |
|
|
EXHIBIT 2 |
CONSOLIDATED BALANCE SHEETS |
|
|
|
(in millions of U.S. dollars, except share amounts, U.S. GAAP) |
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017 |
|
December 31, 2016 |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash & cash equivalents |
$ |
123.2 |
|
$ |
118.1 |
Accounts receivable, net of allowance |
486.7 |
|
403.9 |
Inventories |
324.6 |
|
301.4 |
Prepaid expenses and other current assets |
37.6 |
|
29.8 |
Total current assets |
972.1 |
|
853.2 |
|
|
|
|
Property, plant & equipment, net |
935.8 |
|
929.9 |
Goodwill |
1,217.6 |
|
1,175.4 |
Intangible assets, net |
951.3 |
|
939.7 |
Deferred tax assets |
1.5 |
|
0.2 |
Other long-term assets, net |
39.3 |
|
41.3 |
Total assets |
$ |
4,117.6 |
|
$ |
3,939.7 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Short-term borrowings |
$ |
255.0 |
|
$ |
207.0 |
Current maturities of long-term debt |
6.6 |
|
5.7 |
Accounts payable and accrued liabilities |
711.3 |
|
597.4 |
Total current liabilities |
972.9 |
|
810.1 |
|
|
|
|
Long-term debt |
2,038.2 |
|
1,988.0 |
Deferred tax liabilities |
164.1 |
|
157.8 |
Other long-term liabilities |
112.9 |
|
110.0 |
Total liabilities |
3,288.1 |
|
3,065.9 |
|
|
|
|
Equity |
|
|
|
Common shares, no par - 139,031,856 (December 31, 2016 - 138,591,100) |
|
|
|
shares issued |
912.0 |
|
909.3 |
Additional paid-in-capital |
61.4 |
|
54.2 |
(Accumulated deficit) retained earnings |
(54.8) |
|
22.9 |
Accumulated other comprehensive loss |
(96.9) |
|
(117.9) |
Total Cott Corporation equity |
821.7 |
|
868.5 |
Non-controlling interests |
7.8 |
|
5.3 |
Total equity |
829.5 |
|
873.8 |
Total liabilities and equity |
$ |
4,117.6 |
|
$ |
3,939.7 |
COTT CORPORATION |
|
|
|
|
|
|
|
EXHIBIT 3 |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
|
(in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
Operating Activities |
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(22.3) |
|
$ |
8.9 |
|
$ |
(56.7) |
|
$ |
7.5 |
|
Depreciation & amortization |
|
69.7 |
|
53.5 |
|
134.1 |
|
106.0 |
|
Amortization of financing fees |
|
1.3 |
|
1.3 |
|
2.9 |
|
2.5 |
|
Amortization of senior notes premium |
|
(1.2) |
|
(1.5) |
|
(2.8) |
|
(2.9) |
|
Share-based compensation expense |
|
6.1 |
|
3.8 |
|
10.9 |
|
6.2 |
|
Benefit for deferred income taxes |
|
(0.2) |
|
(2.1) |
|
(0.7) |
|
(13.4) |
|
Unrealized commodity hedging loss (gain), net |
|
0.4 |
|
- |
|
(1.5) |
|
- |
|
Loss on extinguishment of debt, net |
|
18.6 |
|
- |
|
28.7 |
|
- |
|
Loss on disposal of property, plant & equipment, net |
|
4.0 |
|
2.2 |
|
5.4 |
|
3.1 |
|
Other non-cash items |
|
(2.8) |
|
2.6 |
|
(4.8) |
|
0.9 |
|
Change in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(49.4) |
|
(25.7) |
|
(63.4) |
|
(47.4) |
|
|
Inventories |
|
8.9 |
|
4.6 |
|
(17.7) |
|
1.3 |
|
|
Prepaid expenses and other current assets |
|
3.1 |
|
(3.4) |
|
(5.7) |
|
(7.2) |
|
|
Other assets |
|
4.0 |
|
(1.2) |
|
4.5 |
|
1.2 |
|
|
Accounts payable and accrued liabilities, and other liabilities |
|
64.7 |
|
44.6 |
|
68.0 |
|
11.1 |
|
|
|
Net cash provided by operating activities |
|
104.9 |
|
87.6 |
|
101.2 |
|
68.9 |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
Acquisitions, net of cash received |
|
(39.2) |
|
(1.8) |
|
(44.2) |
|
(46.2) |
|
Additions to property, plant & equipment |
|
(40.4) |
|
(33.2) |
|
(81.0) |
|
(62.7) |
|
Additions to intangible assets |
|
(3.0) |
|
(1.0) |
|
(5.8) |
|
(3.3) |
|
Proceeds from sale of property, plant & equipment and |
|
|
|
|
|
|
|
|
|
sale-leasebacks |
|
14.9 |
|
0.2 |
|
19.0 |
|
2.9 |
|
Other investing activities |
|
0.2 |
|
(2.8) |
|
0.4 |
|
(2.8) |
|
|
|
Net cash used in investing activities |
|
(67.5) |
|
(38.6) |
|
(111.6) |
|
(112.1) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
Payments of long-term debt |
|
(524.5) |
|
(0.4) |
|
(727.8) |
|
(1.5) |
|
Issuance of long-term debt |
|
- |
|
- |
|
750.0 |
|
- |
|
Borrowings under ABL |
|
685.7 |
|
123.9 |
|
1,458.6 |
|
621.1 |
|
Payments under ABL |
|
(576.6) |
|
(187.7) |
|
(1,410.8) |
|
(746.0) |
|
Premiums and costs paid upon extinguishment of |
|
|
|
|
|
|
|
|
|
long-term debt |
|
(22.0) |
|
- |
|
(29.2) |
|
- |
|
Financing fees |
|
(1.7) |
|
- |
|
(11.1) |
|
- |
|
Distributions to non-controlling interests |
|
(0.9) |
|
(1.0) |
|
(1.8) |
|
(3.3) |
|
Issuance of common shares |
|
0.3 |
|
220.1 |
|
0.8 |
|
364.2 |
|
Common shares repurchased and cancelled |
|
- |
|
- |
|
(1.8) |
|
(1.1) |
|
Dividends paid to common shareowners |
|
(8.3) |
|
(7.4) |
|
(16.7) |
|
(14.7) |
|
Other financing activities |
|
0.4 |
|
- |
|
0.9 |
|
- |
|
|
|
Net cash (used in) provided by financing activities |
|
(447.6) |
|
147.5 |
|
11.1 |
|
218.7 |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
2.9 |
|
(2.1) |
|
4.4 |
|
(3.1) |
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash & cash equivalents |
|
(407.3) |
|
194.4 |
|
5.1 |
|
172.4 |
|
|
|
|
|
|
|
|
|
Cash & cash equivalents, beginning of period |
|
530.5 |
|
55.1 |
|
118.1 |
|
77.1 |
|
|
|
|
|
|
|
|
|
Cash & cash equivalents, end of period |
|
$ |
123.2 |
|
$ |
249.5 |
|
$ |
123.2 |
|
$ |
249.5 |
COTT CORPORATION |
|
|
|
|
|
|
|
|
EXHIBIT 4 |
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
(in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended July 1, 2017 |
(in millions of U.S. dollars) |
|
Water & Coffee
Solutions |
|
Cott North
America |
|
Cott U.K. |
|
All Other |
|
Corporate |
|
Elimination |
|
Total |
Revenue, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private label retail |
|
$ |
23.5 |
|
$ |
268.1 |
|
$ |
54.4 |
|
$ |
0.8 |
|
$ |
- |
|
$ |
(0.4) |
|
$ |
346.4 |
Branded retail |
|
20.3 |
|
24.1 |
|
40.3 |
|
1.1 |
|
- |
|
(0.5) |
|
85.3 |
Contract packaging |
|
- |
|
45.7 |
|
24.9 |
|
3.3 |
|
- |
|
(2.3) |
|
71.6 |
Home and office bottled water delivery |
|
256.6 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
256.6 |
Coffee and tea services |
|
173.8 |
|
- |
|
0.7 |
|
- |
|
- |
|
- |
|
174.5 |
Concentrate and other |
|
64.7 |
|
7.1 |
|
4.2 |
|
6.9 |
|
- |
|
(3.2) |
|
79.7 |
Total |
|
$ |
538.9 |
|
$ |
345.0 |
|
$ |
124.5 |
|
$ |
12.1 |
|
$ |
- |
|
$ |
(6.4) |
|
$ |
1,014.1 |
Gross Profit 1 |
|
$ |
280.4 |
|
$ |
46.4 |
|
$ |
11.2 |
|
$ |
4.3 |
|
$ |
- |
|
$ |
- |
|
$ |
342.3 |
Gross Margin % 2 |
|
52.0% |
|
13.7% |
|
9.0% |
|
35.5% |
|
- |
|
- |
|
33.8% |
Operating income (loss) |
|
$ |
26.4 |
|
$ |
9.1 |
|
$ |
2.2 |
|
$ |
1.9 |
|
$ |
(9.0) |
|
$ |
- |
|
$ |
30.6 |
Depreciation and Amortization |
|
$ |
47.0 |
|
$ |
17.8 |
|
$ |
4.8 |
|
$ |
0.1 |
|
$ |
- |
|
$ |
- |
|
$ |
69.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended July 2, 2016 |
(in millions of U.S. dollars) |
|
Water & Coffee
Solutions |
|
Cott North
America |
|
Cott U.K. |
|
All Other |
|
Corporate |
|
Elimination |
|
Total |
Revenue, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private label retail |
|
$ |
20.7 |
|
$ |
280.9 |
|
$ |
54.9 |
|
$ |
1.1 |
|
$ |
- |
|
$ |
(0.3) |
|
$ |
357.3 |
Branded retail |
|
22.9 |
|
24.8 |
|
41.2 |
|
1.0 |
|
- |
|
(0.4) |
|
89.5 |
Contract packaging |
|
- |
|
35.7 |
|
31.0 |
|
5.0 |
|
- |
|
(2.5) |
|
69.2 |
Home and office bottled water delivery |
|
177.2 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
177.2 |
Coffee and tea services |
|
30.0 |
|
- |
|
0.8 |
|
- |
|
- |
|
- |
|
30.8 |
Concentrate and other |
|
24.9 |
|
7.8 |
|
4.4 |
|
7.7 |
|
- |
|
(3.8) |
|
41.0 |
Total |
|
$ |
275.7 |
|
$ |
349.2 |
|
$ |
132.3 |
|
$ |
14.8 |
|
$ |
- |
|
$ |
(7.0) |
|
$ |
765.0 |
Gross Profit 1 |
|
$ |
170.8 |
|
$ |
51.8 |
|
$ |
24.1 |
|
$ |
5.9 |
|
$ |
- |
|
$ |
- |
|
$ |
252.6 |
Gross Margin % 2 |
|
62.0% |
|
15.1% |
|
18.2% |
|
39.9% |
|
- |
|
- |
|
33.0% |
Operating income (loss) |
|
$ |
17.8 |
|
$ |
18.4 |
|
$ |
11.7 |
|
$ |
3.4 |
|
$ |
(14.7) |
|
$ |
- |
|
$ |
36.6 |
Depreciation and Amortization |
|
$ |
29.3 |
|
$ |
18.6 |
|
$ |
5.4 |
|
$ |
0.2 |
|
$ |
- |
|
$ |
- |
|
$ |
53.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended July 1, 2017 |
(in millions of U.S. dollars) |
|
Water & Coffee
Solutions |
|
Cott North
America |
|
Cott U.K. |
|
All Other |
|
Corporate |
|
Elimination |
|
Total |
Revenue, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private label retail |
|
$ |
44.9 |
|
$ |
508.7 |
|
$ |
92.7 |
|
$ |
1.7 |
|
$ |
- |
|
$ |
(0.8) |
|
$ |
647.2 |
Branded retail |
|
39.4 |
|
46.7 |
|
69.8 |
|
2.0 |
|
- |
|
(0.9) |
|
157.0 |
Contract packaging |
|
- |
|
76.8 |
|
46.7 |
|
6.3 |
|
- |
|
(4.2) |
|
125.6 |
Home and office bottled water delivery |
|
485.7 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
485.7 |
Coffee and tea services |
|
339.4 |
|
- |
|
1.3 |
|
- |
|
- |
|
- |
|
340.7 |
Concentrate and other |
|
125.0 |
|
13.9 |
|
8.2 |
|
13.6 |
|
- |
|
(6.4) |
|
154.3 |
Total |
|
$ |
1,034.4 |
|
$ |
646.1 |
|
$ |
218.7 |
|
$ |
23.6 |
|
$ |
- |
|
$ |
(12.3) |
|
$ |
1,910.5 |
Gross Profit 1 |
|
$ |
542.8 |
|
$ |
79.6 |
|
$ |
22.3 |
|
$ |
8.2 |
|
$ |
- |
|
$ |
- |
|
$ |
652.9 |
Gross Margin % 2 |
|
52.5% |
|
12.6% |
|
10.2% |
|
34.7% |
|
- |
|
- |
|
34.2% |
Operating income (loss) |
|
$ |
41.3 |
|
$ |
10.2 |
|
$ |
2.2 |
|
$ |
3.5 |
|
$ |
(15.8) |
|
$ |
- |
|
$ |
41.4 |
Depreciation and Amortization |
|
$ |
88.6 |
|
$ |
35.6 |
|
$ |
9.6 |
|
$ |
0.3 |
|
$ |
- |
|
$ |
- |
|
$ |
134.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended July 2, 2016 |
(in millions of U.S. dollars) |
|
Water & Coffee
Solutions |
|
Cott North
America |
|
Cott U.K. |
|
All Other |
|
Corporate |
|
Elimination |
|
Total |
Revenue, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private label retail |
|
$ |
37.6 |
|
$ |
529.4 |
|
$ |
105.6 |
|
$ |
1.6 |
|
$ |
- |
|
$ |
(0.7) |
|
$ |
673.5 |
Branded retail |
|
47.2 |
|
51.6 |
|
77.4 |
|
1.8 |
|
- |
|
(0.7) |
|
177.3 |
Contract packaging |
|
- |
|
67.1 |
|
59.3 |
|
9.7 |
|
- |
|
(4.6) |
|
131.5 |
Home and office bottled water delivery |
|
339.2 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
339.2 |
Coffee and tea services |
|
61.5 |
|
- |
|
1.6 |
|
- |
|
- |
|
- |
|
63.1 |
Concentrate and other |
|
47.5 |
|
14.4 |
|
9.0 |
|
15.3 |
|
- |
|
(7.4) |
|
78.8 |
Total |
|
$ |
533.0 |
|
$ |
662.5 |
|
$ |
252.9 |
|
$ |
28.4 |
|
$ |
- |
|
$ |
(13.4) |
|
$ |
1,463.4 |
Gross Profit 1 |
|
$ |
325.2 |
|
$ |
86.7 |
|
$ |
43.8 |
|
$ |
10.9 |
|
$ |
- |
|
$ |
- |
|
$ |
466.6 |
Gross Margin % 2 |
|
61.0% |
|
13.4% |
|
17.3% |
|
38.4% |
|
- |
|
- |
|
31.9% |
Operating income (loss) |
|
$ |
23.5 |
|
$ |
19.0 |
|
$ |
21.6 |
|
$ |
5.9 |
|
$ |
(18.7) |
|
$ |
- |
|
$ |
51.3 |
Depreciation and Amortization |
|
$ |
57.7 |
|
$ |
36.9 |
|
$ |
10.9 |
|
$ |
0.5 |
|
$ |
- |
|
$ |
- |
|
$ |
106.0 |
1 Gross profit from external revenues. |
2Cott North America gross margin relative to external revenues. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COTT CORPORATION |
|
|
|
|
|
|
EXHIBIT 5 |
SUPPLEMENTARY INFORMATION - NON-GAAP - Analysis of Revenue by Reporting Segment |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
(in millions of U.S. dollars, except percentage amounts) |
|
July 1, 2017 |
|
|
Water & Coffee
Solutions |
Cott North
America |
Cott U.K. |
All Other |
Elimination |
Cott 1 |
|
Change in revenue |
|
$ |
263.2 |
$ |
(4.2) |
$ |
(7.8) |
$ |
(2.7) |
$ |
0.6 |
$ |
249.1 |
|
Impact of foreign exchange 2 |
|
0.6 |
1.1 |
15.8 |
0.2 |
- |
17.7 |
|
Change excluding foreign exchange |
|
$ |
263.8 |
$ |
(3.1) |
$ |
8.0 |
$ |
(2.5) |
$ |
0.6 |
$ |
266.8 |
|
Percentage change in revenue |
|
95.5% |
-1.2% |
-5.9% |
-18.2% |
-8.6% |
32.6% |
|
Percentage change in revenue excluding foreign exchange |
|
95.7% |
-0.9% |
6.0% |
-16.9% |
-8.6% |
34.9% |
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
(in millions of U.S. dollars, except percentage amounts) |
|
July 1, 2017 |
|
|
Water & Coffee
Solutions |
Cott North
America |
Cott U.K. |
All Other |
Elimination |
Cott 1 |
|
Change in revenue |
|
$ |
501.4 |
$ |
(16.4) |
$ |
(34.2) |
$ |
(4.8) |
$ |
1.1 |
$ |
447.1 |
|
Impact of foreign exchange2 |
|
0.1 |
0.2 |
30.2 |
0.6 |
- |
31.1 |
|
Change excluding foreign exchange |
|
$ |
501.5 |
$ |
(16.2) |
$ |
(4.0) |
$ |
(4.2) |
$ |
1.1 |
$ |
478.2 |
|
Percentage change in revenue |
|
94.1% |
-2.5% |
-13.5% |
-16.9% |
-8.2% |
30.6% |
|
Percentage change in revenue excluding foreign exchange |
|
94.1% |
-2.4% |
-1.6% |
-14.8% |
-8.2% |
32.7% |
1 Cott includes the following reporting segments: Water & Coffee Solutions, Cott North America, Cott U.K. and All Other. |
2 Impact of foreign exchange is the difference between the current period revenue translated utilizing the current period average foreign exchange rates less the current period revenue translated utilizing the prior period average foreign exchange rates. |
COTT CORPORATION |
|
|
|
|
|
|
|
EXHIBIT 6 |
SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
& AMORTIZATION |
(EBITDA) |
|
|
|
|
|
|
|
|
(in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
Net (loss) income attributed to Cott Corporation |
|
$ |
(24.6) |
|
$ |
7.4 |
|
$ |
(61.0) |
|
$ |
4.6 |
Interest expense, net |
|
33.3 |
|
27.0 |
|
69.0 |
|
54.8 |
Income tax expense (benefit) |
|
1.4 |
|
(2.3) |
|
2.5 |
|
(11.8) |
Depreciation & amortization |
|
69.7 |
|
53.5 |
|
134.1 |
|
106.0 |
Net income attributable to non-controlling interests |
|
2.3 |
|
1.5 |
|
4.3 |
|
2.9 |
EBITDA |
|
$ |
82.1 |
|
$ |
87.1 |
|
$ |
148.9 |
|
$ |
156.5 |
|
|
|
|
|
|
|
|
|
Acquisition and integration costs 1, 3 |
|
8.0 |
|
11.7 |
|
15.3 |
|
13.1 |
Share-based compensation expense 2, 4 |
|
5.5 |
|
3.6 |
|
9.1 |
|
5.6 |
Inventory step-up 5 |
|
- |
|
- |
|
- |
|
0.5 |
Unrealized commodity hedging loss (gain), net 6 |
|
0.4 |
|
0.1 |
|
(1.5) |
|
0.1 |
Foreign exchange and other (gains) losses, net 7 |
|
(0.3) |
|
2.2 |
|
(1.7) |
|
(0.4) |
Loss on disposal of property, plant & equipment, net 8 |
|
4.1 |
|
2.2 |
|
5.9 |
|
3.1 |
Loss on extinguishment of long-term debt, net 9 |
|
18.6 |
|
- |
|
28.7 |
|
- |
Other adjustments 10 |
|
3.9 |
|
1.6 |
|
5.7 |
|
2.9 |
Adjusted EBITDA |
|
$ |
122.3 |
|
$ |
108.5 |
|
$ |
210.4 |
|
$ |
181.4 |
1 Includes $0.6 million and $1.8 million of share-based compensation costs for the three and six months ended July 1, 2017, respectively, related to awards granted in connection with the acquisition of our S&D and Eden businesses and $0.2 million and $0.6 million of share-based compensation costs for the three and six months ended July 2, 2016, respectively, related to awards granted in connection with the acquisition of our DSS business. |
|
2 Effective January 1, 2017, share-based compensation expense, as a part of annual compensation packages, is included in adjustments to EBITDA, and prior periods presented have been updated to incorporate the change. This determination is based upon a review of peer companies and business practice among entities undergoing transformation within their operations. |
|
|
Location in Consolidated |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
Statements of Operations |
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
3Acquisition and integration costs, net |
|
Acquisition and integration expenses |
|
$ |
8.0 |
|
$ |
11.7 |
|
$ |
15.3 |
|
$ |
13.1 |
4Share-based compensation expense |
|
Selling, general and administrative expenses |
|
5.5 |
|
3.6 |
|
9.1 |
|
5.6 |
5Inventory step-up |
|
Cost of sales |
|
- |
|
- |
|
- |
|
0.5 |
6Unrealized commodity hedging gain, net |
|
Cost of sales |
|
0.4 |
|
0.1 |
|
(1.5) |
|
0.1 |
7Foreign exchange and other gains, net |
|
Other expense (income), net |
|
(0.3) |
|
2.2 |
|
(1.7) |
|
(0.4) |
8Loss on disposal of property, plant & equipment, net |
|
Loss on disposal of property, |
|
|
|
|
|
|
|
|
|
|
plant & equipment, net |
|
4.1 |
|
2.2 |
|
5.9 |
|
3.1 |
9Loss on extinguishment of long-term debt, net |
|
Other expense (income), net |
|
18.6 |
|
- |
|
28.7 |
|
- |
10Other adjustments |
|
Revenue, net |
|
0.6 |
|
- |
|
0.6 |
|
- |
|
|
Cost of sales |
|
0.8 |
|
- |
|
0.8 |
|
- |
|
|
Selling, general and administrative expenses |
|
2.5 |
|
0.2 |
|
4.3 |
|
1.5 |
|
|
Other expense (income), net |
|
- |
|
1.4 |
|
- |
|
1.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COTT CORPORATION |
|
|
|
EXHIBIT 7 |
SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND |
|
|
|
ADJUSTED FREE CASH FLOW |
|
|
|
|
(in millions of U.S. dollars) |
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
104.9 |
|
$ |
87.6 |
|
Less: Additions to property, plant, and equipment |
|
(40.4) |
|
(33.2) |
Free Cash Flow |
|
$ |
64.5 |
|
$ |
54.4 |
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
Acquisition and integration cash costs |
|
6.6 |
|
0.8 |
Adjusted Free Cash Flow |
|
$ |
71.1 |
|
$ |
55.2 |
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
101.2 |
|
$ |
68.9 |
|
Less: Additions to property, plant, and equipment |
|
$ |
(81.0) |
|
(62.7) |
Free Cash Flow |
|
$ |
20.2 |
|
$ |
6.2 |
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
Acquisition and integration cash costs |
|
12.3 |
|
1.9 |
Adjusted Free Cash Flow |
|
$ |
32.5 |
|
$ |
8.1 |
COTT CORPORATION |
|
|
|
|
|
|
|
EXHIBIT 8 |
SUPPLEMENTARY INFORMATION - NON-GAAP - ADJUSTED NET INCOME (LOSS) |
(in millions of U.S. dollars, except share and per share amounts) |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
|
Net (loss) income attributed to Cott Corporation |
|
$ |
(24.6) |
|
$ |
7.4 |
|
$ |
(61.0) |
|
$ |
4.6 |
|
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
8.0 |
|
11.7 |
|
15.3 |
|
13.1 |
Inventory step-up |
|
- |
|
- |
|
- |
|
0.5 |
Unrealized commodity hedging loss (gain), net |
|
0.4 |
|
0.1 |
|
(1.5) |
|
0.1 |
Foreign exchange and other (gains) losses, net |
|
(0.3) |
|
2.2 |
|
(1.7) |
|
(0.4) |
Loss on disposal of property, plant & equipment, net |
|
4.1 |
|
2.2 |
|
5.9 |
|
3.1 |
Loss on extinguishment of long-term debt, net |
|
18.6 |
|
- |
|
28.7 |
|
- |
Other adjustments1 |
|
3.9 |
|
1.6 |
|
6.5 |
|
2.9 |
Adjustments for tax effect 2 |
|
(1.1) |
|
(6.4) |
|
(1.7) |
|
(7.1) |
Adjusted net income (loss) attributed to |
|
|
|
|
|
|
|
|
Cott Corporation |
|
$ |
9.0 |
|
$ |
18.8 |
|
$ |
(9.5) |
|
$ |
16.8 |
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per common share |
|
|
|
|
|
|
|
|
attributed to Cott Corporation |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
$ |
0.15 |
|
$ |
(0.07) |
|
$ |
0.14 |
|
Diluted |
|
$ |
0.06 |
|
$ |
0.15 |
|
$ |
(0.07) |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
(millions) |
|
|
|
|
|
|
|
|
|
Basic |
|
139.0 |
|
123.2 |
|
138.9 |
|
118.3 |
|
Diluted |
|
140.2 |
|
124.2 |
|
138.9 |
|
119.0 |
1 Includes $0.8 million of interest expense for the six months ended July 1, 2017 related to the debt refinancing of our 2020 Notes. |
2 Reflects tax effect of adjustments at the statutory tax rate within the applicable tax jurisdiction. |
WATER & COFFEE SOLUTIONS REPORTING SEGMENT |
|
EXHIBIT 9 |
SUPPLEMENTARY INFORMATION - REVENUE |
|
|
(in millions of U.S. dollars) |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
Eden + |
|
Water & |
|
|
|
|
DSS 1 |
|
S&D |
|
Coffee Solutions |
|
DSS 1 |
Revenue, net |
|
$ |
281.4 |
|
$ |
257.5 |
|
$ |
538.9 |
|
$ |
275.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
Eden + |
|
Water & |
|
|
|
|
DSS 2 |
|
S&D |
|
Coffee Solutions |
|
DSS 2 |
Revenue, net |
|
$ |
544.6 |
|
$ |
489.8 |
|
$ |
1,034.4 |
|
$ |
533.0 |
1Includes $15.7 million and $16.8 million of Canadian operations revenue for the three months ended July 1, 2017 and July 2, 2016, respectively. |
2Includes $30.1 million and $31.0 million of Canadian operations revenue for the six months ended July 1, 2017 and July 2, 2016, respectively. |
SOURCE Cott Corporation
View original content with multimedia: http://www.newswire.ca/en/releases/archive/August2017/03/c3072.html
%CIK: 0000884713
For further information: Jarrod Langhans, Investor Relations,
Tel: (813) 313-1732, Investorrelations@cott.com
CO: Cott Corporation
CNW 06:45e 03-AUG-17
This regulatory filing also includes additional resources:
ex991.pdf
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