(Unless stated otherwise, all third quarter 2017 comparisons are
relative to the third quarter of 2016; all information is in U.S.
dollars.)
TORONTO and TAMPA, FL, Nov. 9,
2017 /CNW/ - Cott Corporation (NYSE:COT; TSX:BCB) today
announced its results for the third quarter ended September 30, 2017.
Upon announcing the sale of Cott's traditional North America, U.K., and Mexico businesses ("traditional business")
(excluding the RCI International division and its associated
concentrate facility as well as Aimia Foods division in the U.K.),
generally accepted accounting principles required the reported
results for all periods presented to exclude the operating results
of our traditional business as it has been classified in our
consolidated financial statements as discontinued operations.
THIRD QUARTER 2017 HIGHLIGHTS
- Revenue from continuing operations increased 22% to
$581 million compared to $477 million.
- Gross profit from continuing operations increased 18% to
$293 million compared to $248 million.
- Operating income from continuing operations increased 100% to
$27 million compared to $14 million.
- For comparative purposes, total company revenue including
discontinued operations was $995
million compared to $885
million while reported net income and net income per diluted
share were $43 million and
$0.30, respectively, compared to
reported net loss and net loss per diluted share of $3 million and $0.02, respectively.
- The sale of Cott's traditional business is on track to close
near the end of 2017 with Refresco Group N.V. ("Refresco")
shareholder approval and U.S. and Canada regulatory approval received. The
request for U.K. regulatory approval is on schedule with a draft of
the Merger Notice submitted to the U.K. Regulatory Authority in
August, the subsequent customary period of pre-notification
engagement with the UK Regulatory Authority completed, and the
final Merger Notice submitted. We are now in the process of the
Authority's 40 business day formal review period.
"I was pleased to see the solid top and bottom line performance
across our key business platforms during the quarter. Comparable
revenue growth of over 3% in our Route Based Services segment and
7% in our Coffee, Tea and Extract Solutions segment illustrates the
shape and potential of new Cott," commented Jerry Fowden, Cott's Chief Executive Officer.
"We believe our outlook for driving organic growth and capturing
synergies, alongside executing our tuck-in acquisition strategy
puts us on a clear path to generating $150
million of adjusted free cash flow by the end of 2019,"
continued Mr. Fowden.
THIRD QUARTER 2017 CONTINUING OPERATIONS GLOBAL
PERFORMANCE
- Revenue increased 22% to $581
million (increased 4% on a pro forma basis, treating
Eden Springs ("Eden") and S&D
Coffee and Tea ("S&D") as if they had been acquired at the
beginning of the third quarter of 2016), driven primarily by the
additions of S&D and Eden as well as growth at DS Services.
Cott remains on track to deliver at or above $2.2 billion of revenue from its continuing
operations in 2017 driven by the strong coffee volume growth within
the Coffee, Tea and Extract Solutions segment as well as growth
within the Route Based Services segment driven by growth in
consumption and customers and increased pricing.
Continuing
Operations
|
Revenue
Bridge
|
2016 Q3
Revenue
|
|
|
|
$
|
476.7
|
Route Based
Services
|
|
|
|
48.7
|
S&D Full Quarter
of Operations
|
|
|
|
56.1
|
Foreign exchange
impact
|
|
|
|
(0.6)
|
2017 Q3
Revenue
|
|
|
|
$
|
580.9
|
- Gross profit increased 18% to $293
million, driven primarily by the addition of Eden and
S&D and growth at DS Services. Gross margin as a percentage of
revenue was 50.4% compared to 52.0% as a full quarter of S&D
operations affected the mix of our gross margin.
- Income tax expense was $1 million
compared to income tax expense of $3
million.
- Reported net income and net income per diluted share were
$2 million and $0.01, respectively, compared to reported net
loss and net loss per diluted share of $4
million and $0.03,
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 $5
million and $0.04,
respectively.
- Reported EBITDA was $75 million
compared to $55 million. Adjusted
EBITDA increased 22% to $84 million
due to the ongoing success of Cott's profitability improvement plan
at DS Services as well as a full quarter of operations from the
Eden and S&D businesses. (For comparative purposes, total
company EBITDA and Adjusted EBITDA including discontinued
operations were $117 million and
$126 million, respectively compared
to $101 million and $111 million.)
- Net cash provided by operating activities of $46 million less $38
million of capital expenditures resulted in free cash flow
of $8 million and adjusted free cash
flow of $13 million (adjusted for
acquisition, integration, and other cash costs). Free cash flow in
the quarter included higher growth related capex as well as
$13 million of interest associated
with the 10% secured notes that are going to be redeemed with the
proceeds from the sale of our traditional business.
THIRD QUARTER 2017 CONTINUING OPERATIONS REPORTING SEGMENT
PERFORMANCE
Following the announcement of the sale of its traditional
business to Refresco, Cott reorganized the reporting segments of
its continuing operations into three reporting segments: Route
Based Services (which includes the DS Services, Aquaterra and Eden
businesses), Coffee, Tea and Extract Solutions (which includes the
S&D business), and All Other (which includes the RCI
International division and its associated concentrate facility, the
Aimia Foods division in the United
Kingdom and other miscellaneous expenses). Prior year
information has been updated to reflect this change in reporting
segments. A discussion on our discontinued operations appears
further below.
Route Based Services
- Revenue increased 14% to $397
million (3% on a pro forma basis, treating Eden as if it had
been acquired at the beginning of the third quarter of 2016) driven
by a full quarter of operations from Eden alongside continued
revenue growth at DS Services. A detailed breakdown is tabulated
below.
Route Based
Services
|
Revenue
Bridge
|
2016 Q3
Revenue
|
|
|
|
$
|
349.2
|
Eden - Full Quarter
of Operations
|
|
|
|
38.7
|
DS
Services
|
|
|
|
|
|
Price/Mix
|
|
|
|
6.7
|
|
Returnable
volume
|
|
|
|
1.4
|
|
Other
|
|
|
|
2.7
|
|
Aquaterra
|
|
|
|
0.5
|
|
OCS
|
|
|
|
(1.3)
|
|
Foreign exchange
impact
|
|
|
|
(0.6)
|
2017 Q3
Revenue
|
|
|
|
$
|
397.3
|
- U.S. revenue increased 4% and Cott remains on track to meet its
profitability growth targets for fiscal year 2017. Key drivers of
revenue and profitability growth during the quarter were:
-
- HOD water 5 gallon volume growth driven by growth in
customers;
- Pricing as a part of DS Services profitability improvement
plan; and
- Growth within DS Services filtration division.
- Revenue in Cott's European operations, including Israel, increased 55% to $109 million (3% on a pro forma basis, treating
Eden as if it had been acquired at the beginning of the third
quarter of 2016) during the quarter in line with its acquisition
model. Integration and synergy capture accelerated and
continues to track ahead of plan.
- Gross profit increased 15% to $249
million due primarily to the addition of Eden and the
operational leverage associated with the topline growth at DS
Services during the quarter.
Coffee, Tea and Extract Solutions
- Revenue increased 64% to $143
million (7% on a pro forma basis, treating S&D as if it
had been acquired at the beginning of the third quarter of 2016) as
S&D had a full quarter of operations alongside continued
organic revenue growth. S&D integration continues to track in
line with plan while revenues and volume continue to track ahead of
plan with 9% growth in coffee and tea pounds sold. In addition to
general market growth seen within its customer base, key drivers of
revenue and profitability growth for S&D through the first
three quarters include:
-
- Increased SKUs and production within a large existing quick
serve restaurant ("QSR") client;
- Growth and new production within convenience retail; and
- Winning a new QSR contract at the end of 2016.
DISCONTINUED
OPERATIONS
On July 25, 2017, Cott announced
the signing of a definitive agreement to sell its traditional
business to Refresco for $1.25
billion.
As required by generally accepted accounting principles, Cott
has presented the traditional business as discontinued operations
beginning in the third quarter of 2017. The Company has
reclassified the financial results of the traditional business to
net income (loss) from discontinued operations, net of income taxes
in the consolidated statement of operations for all periods
presented. Cott also reclassified the related assets and
liabilities as current and non-current assets and liabilities of
discontinued operations on the accompanying consolidated balance
sheets as of September 30, 2017 and
December 31, 2016. Cash flows
from Cott's discontinued operations are presented in the
consolidated statements of cash flows for all periods
presented.
Revenue within Cott's discontinued operations increased
approximately 2% predominantly driven by continued strong contract
manufacturing and value added and sparkling water beverage volume
growth in the U.S., alongside the complete implementation of U.K.
Brexit related price increases.
On September 5, 2017, Refresco and
Cott announced that 99.5% of the shareholders of Refresco that
voted were in favor of the previously announced acquisition of
Cott's traditional business.
The sale of Cott's traditional business is on track to close at
the end of 2017 with U.S. and Canada regulatory approval received and the
request for U.K. regulatory approval is on schedule with a draft of
the Merger Notice submitted to the U.K. Regulatory Authority in
August, the subsequent customary period of pre-notification
engagement with the UK Regulatory Authority having been completed,
the final Merger Notice having been submitted, and we are in the
process of the Authority's 40 business day formal review
period.
"With the Refresco shareholder vote strongly in favor of our
transaction and Canadian and U.S. regulatory approval already
received, we are much closer to the closing of this transaction.
What's more, we've said that we will operate business as usual
until the transaction closes and it was pleasing to see the first
topline growth in a long time from our traditional business or
discontinued operations for the quarter," commented Jerry Fowden, Cott's Chief Executive
Officer.
2019 REVENUE AND FREE CASH FLOW OUTLOOK
Assuming that the sale of the traditional business closes near
the end of 2017 as expected, Cott is targeting full year 2019
revenues in excess of $2.3 billion
and 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).
THIRD QUARTER 2017 RESULTS CONFERENCE CALL
Cott Corporation will host a conference call today, November 9, 2017, at 10:00
a.m. ET, to discuss third quarter results, which can be
accessed as follows:
North America: (888)
231-8191
International: (647) 427-7450
Conference ID: 95875301
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 utilizes
adjusted net income (loss), adjusted income (loss) per diluted
share, and 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 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:
Cott's and Refresco's ability to complete the transaction on the
anticipated terms and schedule, including the ability to
obtain regulatory approval in the United Kingdom; 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
in the markets in which we operate; 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
related to our 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 Nine
Months Ended
|
|
September 30,
2017
|
|
October 1,
2016
|
|
September 30,
2017
|
|
October 1,
2016
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
580.9
|
|
$
|
476.7
|
|
$
|
1,698.4
|
|
$
|
1,102.0
|
Cost of
sales
|
288.1
|
|
229.0
|
|
849.7
|
|
510.4
|
Gross
profit
|
292.8
|
|
247.7
|
|
848.7
|
|
591.6
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
262.8
|
|
225.3
|
|
777.8
|
|
547.7
|
(Gain) loss on
disposal of property, plant & equipment, net
|
(0.4)
|
|
1.4
|
|
4.8
|
|
4.6
|
Acquisition and
integration expenses
|
3.2
|
|
7.4
|
|
17.2
|
|
20.5
|
Operating
income
|
27.2
|
|
13.6
|
|
48.9
|
|
18.8
|
|
|
|
|
|
|
|
|
Other expense
(income), net
|
1.5
|
|
0.2
|
|
(1.1)
|
|
-
|
Interest expense,
net
|
23.2
|
|
14.5
|
|
62.1
|
|
29.2
|
Income (loss) from
continuing operations before income taxes
|
2.5
|
|
(1.1)
|
|
(12.1)
|
|
(10.4)
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
0.9
|
|
2.9
|
|
1.0
|
|
(4.8)
|
Net income (loss)
from continuing operations
|
$
|
1.6
|
|
$
|
(4.0)
|
|
$
|
(13.1)
|
|
$
|
(5.6)
|
Net income from
discontinued operations, net of income taxes
|
43.0
|
|
2.9
|
|
1.0
|
|
12.0
|
Net income
(loss)
|
$
|
44.6
|
|
$
|
(1.1)
|
|
$
|
(12.1)
|
|
$
|
6.4
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests -
|
|
|
|
|
|
|
|
discontinued
operations
|
2.1
|
|
1.5
|
|
6.4
|
|
4.4
|
Net income (loss)
attributable to Cott Corporation
|
$
|
42.5
|
|
$
|
(2.6)
|
|
$
|
(18.5)
|
|
$
|
2.0
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share attributable to Cott Corporation
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.01
|
|
$
|
(0.03)
|
|
$
|
(0.09)
|
|
$
|
(0.04)
|
|
|
Discontinued
operations
|
$
|
0.29
|
|
$
|
0.01
|
|
$
|
(0.04)
|
|
$
|
0.06
|
|
|
Net income
(loss)
|
$
|
0.30
|
|
$
|
(0.02)
|
|
$
|
(0.13)
|
|
$
|
0.02
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.01
|
|
$
|
(0.03)
|
|
$
|
(0.09)
|
|
$
|
(0.04)
|
|
|
Discontinued
operations
|
$
|
0.29
|
|
$
|
0.01
|
|
$
|
(0.04)
|
|
$
|
0.06
|
|
|
Net income
(loss)
|
$
|
0.30
|
|
$
|
(0.02)
|
|
$
|
(0.13)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
139,205
|
|
138,195
|
|
138,980
|
|
124,900
|
|
|
Diluted
|
141,003
|
|
138,195
|
|
138,980
|
|
124,900
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.06
|
|
$
|
0.06
|
|
$
|
0.18
|
|
$
|
0.18
|
COTT
CORPORATION
|
|
|
EXHIBIT
2
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
(in millions of
U.S. dollars, except share amounts, U.S. GAAP)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash & cash
equivalents
|
$
|
82.0
|
|
$
|
78.1
|
Accounts receivable,
net of allowance
|
311.6
|
|
276.7
|
Inventories
|
142.3
|
|
124.6
|
Prepaid expenses and
other current assets
|
22.2
|
|
22.1
|
Current assets of
discontinued operations
|
426.5
|
|
351.7
|
Total current
assets
|
984.6
|
|
853.2
|
|
|
|
|
Property, plant &
equipment, net
|
590.4
|
|
581.8
|
Goodwill
|
1,097.0
|
|
1,048.3
|
Intangible assets,
net
|
763.9
|
|
759.0
|
Deferred tax
assets
|
2.2
|
|
-
|
Other long-term
assets, net
|
36.8
|
|
24.0
|
Long-term assets of
discontinued operations
|
673.6
|
|
673.4
|
Total
assets
|
$
|
4,148.5
|
|
$
|
3,939.7
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
2.6
|
|
2.9
|
Accounts payable and
accrued liabilities
|
453.1
|
|
368.0
|
Current liabilities
of discontinued operations
|
519.1
|
|
439.2
|
Total current
liabilities
|
974.8
|
|
810.1
|
|
|
|
|
Long-term
debt
|
1,534.0
|
|
851.4
|
Deferred tax
liabilities
|
131.9
|
|
155.0
|
Other long-term
liabilities
|
67.5
|
|
75.4
|
Long-term liabilities
of discontinued operations
|
566.5
|
|
1,174.0
|
Total
liabilities
|
3,274.7
|
|
3,065.9
|
|
|
|
|
Equity
|
|
|
|
Common shares, no par
- 139,268,878 (December 31, 2016 - 138,591,100) shares
issued
|
915.5
|
|
909.3
|
Additional
paid-in-capital
|
63.3
|
|
54.2
|
(Accumulated deficit)
retained earnings
|
(20.7)
|
|
22.9
|
Accumulated other
comprehensive loss
|
(92.7)
|
|
(117.9)
|
Total Cott
Corporation equity
|
865.4
|
|
868.5
|
Non-controlling
interests
|
8.4
|
|
5.3
|
Total
equity
|
873.8
|
|
873.8
|
Total liabilities
and equity
|
$
|
4,148.5
|
|
$
|
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 Nine
Months Ended
|
|
September 30,
2017
|
|
October 1,
2016
|
|
September 30,
2017
|
|
October 1,
2016
|
Cash flows from
operating activities of continuing operations:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
44.6
|
|
$
|
(1.1)
|
|
$
|
(12.1)
|
|
$
|
6.4
|
|
Net income from
discontinued operations, net of income taxes
|
43.0
|
|
2.9
|
|
1.0
|
|
12.0
|
|
Net income (loss)
from continuing operations
|
1.6
|
|
(4.0)
|
|
(13.1)
|
|
(5.6)
|
Adjustments to
reconcile net income (loss) from continuing
|
|
|
|
|
|
|
|
operations to cash
flows from operating activities:
|
|
|
|
|
|
|
|
|
Depreciation &
amortization
|
49.4
|
|
41.2
|
|
141.8
|
|
102.6
|
|
Amortization of
financing fees
|
0.6
|
|
0.3
|
|
1.4
|
|
0.3
|
|
Amortization of
senior notes premium
|
(1.1)
|
|
(1.5)
|
|
(3.9)
|
|
(4.4)
|
|
Share-based
compensation expense
|
2.1
|
|
(0.9)
|
|
11.1
|
|
4.0
|
|
Benefit for deferred
income taxes
|
(3.1)
|
|
1.3
|
|
1.4
|
|
(11.3)
|
|
Unrealized commodity
hedging gain, net
|
(0.4)
|
|
(1.0)
|
|
(1.9)
|
|
(0.8)
|
|
Gain on
extinguishment of debt, net
|
-
|
|
-
|
|
(1.5)
|
|
-
|
|
(Gain) loss on
disposal of property, plant & equipment, net
|
(0.4)
|
|
1.4
|
|
4.8
|
|
4.6
|
|
Other non-cash
items
|
(8.4)
|
|
8.5
|
|
(13.2)
|
|
7.7
|
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(16.4)
|
|
4.6
|
|
(36.7)
|
|
(18.5)
|
|
|
Inventories
|
(4.9)
|
|
7.4
|
|
(14.5)
|
|
10.6
|
|
|
Prepaid expenses and
other current assets
|
2.5
|
|
1.6
|
|
(0.3)
|
|
(3.5)
|
|
|
Other
assets
|
0.7
|
|
(1.0)
|
|
4.8
|
|
0.6
|
|
|
Accounts payable and
accrued liabilities and other liabilities
|
24.0
|
|
(6.8)
|
|
58.5
|
|
(14.4)
|
|
|
|
Net cash provided by
operating activities from continuing
|
|
|
|
|
|
|
|
|
|
|
operations
|
46.2
|
|
51.1
|
|
138.7
|
|
71.9
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities of continuing operations:
|
|
|
|
|
|
|
|
|
Acquisitions, net of
cash received
|
(3.4)
|
|
(912.5)
|
|
(33.4)
|
|
(958.7)
|
|
Additions to
property, plant & equipment
|
(38.2)
|
|
(32.4)
|
|
(97.1)
|
|
(69.3)
|
|
Additions to
intangible assets
|
(3.4)
|
|
(1.2)
|
|
(6.0)
|
|
(2.3)
|
|
Proceeds from sale of
property, plant & equipment
|
3.1
|
|
1.3
|
|
6.0
|
|
1.5
|
|
Other investing
activities
|
0.5
|
|
-
|
|
0.9
|
|
-
|
|
|
|
Net cash used in
investing activities from continuing
|
|
|
|
|
|
|
|
|
|
|
operations
|
(41.4)
|
|
(944.8)
|
|
(129.6)
|
|
(1,028.8)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities of continuing operations:
|
|
|
|
|
|
|
|
|
Payments of long-term
debt
|
(0.3)
|
|
(0.8)
|
|
(101.9)
|
|
(0.9)
|
|
Issuance of long-term
debt
|
-
|
|
-
|
|
750.0
|
|
498.7
|
|
Premiums and costs
paid upon extinguishment of long-term debt
|
-
|
|
-
|
|
(7.7)
|
|
-
|
|
Issuance of common
shares
|
2.1
|
|
2.4
|
|
2.9
|
|
366.6
|
|
Common shares
repurchased and cancelled
|
(0.1)
|
|
(3.4)
|
|
(1.9)
|
|
(4.5)
|
|
Financing
fees
|
-
|
|
(9.6)
|
|
(11.1)
|
|
(9.6)
|
|
Dividends paid to
common shareholders
|
(8.4)
|
|
(8.4)
|
|
(25.1)
|
|
(23.1)
|
|
Payment of contingent
consideration for acquisitions
|
-
|
|
(10.8)
|
|
-
|
|
(10.8)
|
|
Other financing
activities
|
-
|
|
-
|
|
0.5
|
|
-
|
|
|
|
Net cash (used in)
provided by financing activities from
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
(6.7)
|
|
(30.6)
|
|
605.7
|
|
816.4
|
Cash flows from
discontinued operations:
|
|
|
|
|
|
|
|
|
Operating activities
of discontinued operations
|
47.4
|
|
44.9
|
|
56.1
|
|
87.5
|
|
Investing activities
of discontinued operations
|
(13.3)
|
|
(8.2)
|
|
(36.7)
|
|
(29.3)
|
|
Financing activities
of discontinued operations
|
(9.2)
|
|
257.9
|
|
(610.5)
|
|
128.3
|
|
Net cash provided by
(used in) discontinued operations
|
24.9
|
|
294.6
|
|
(591.1)
|
|
186.5
|
Effect of exchange
rate changes on cash
|
2.0
|
|
(4.0)
|
|
6.4
|
|
(4.2)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and
|
|
|
|
|
|
|
|
restricted
cash
|
25.0
|
|
(633.7)
|
|
30.1
|
|
41.8
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of
period
|
123.2
|
|
752.6
|
|
118.1
|
|
77.1
|
|
|
|
|
|
|
|
|
Cash & cash
equivalents, end of period
|
148.2
|
|
118.9
|
|
148.2
|
|
118.9
|
Cash & cash
equivalents of
|
|
|
|
|
|
|
|
discontinued
operations, end of period
|
66.2
|
|
27.5
|
|
66.2
|
|
27.5
|
Cash & cash
equivalents from
|
|
|
|
|
|
|
|
continuing
operations, end of period
|
$
|
82.0
|
|
$
|
91.4
|
|
$
|
82.0
|
|
$
|
91.4
|
COTT
CORPORATION
|
|
|
|
|
|
|
|
|
|
EXHIBIT
4
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30, 2017
|
(in millions of
U.S. dollars)
|
|
Route Based
Services
|
|
Coffee, Tea
and Extract
Solutions
|
|
All
Other
|
|
Corporate
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery
|
|
$
|
268.0
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
268.0
|
Coffee and tea
services
|
|
44.2
|
|
120.9
|
|
0.7
|
|
-
|
|
165.8
|
Retail
|
|
43.5
|
|
-
|
|
11.7
|
|
-
|
|
55.2
|
Other
|
|
41.6
|
|
22.5
|
|
27.8
|
|
-
|
|
91.9
|
Total
1
|
|
$
|
397.3
|
|
$
|
143.4
|
|
$
|
40.2
|
|
$
|
-
|
|
$
|
580.9
|
Gross Profit
2
|
|
$
|
249.2
|
|
$
|
36.8
|
|
$
|
6.8
|
|
$
|
-
|
|
$
|
292.8
|
Gross Margin
%
|
|
62.7%
|
|
25.7%
|
|
16.9%
|
|
-
|
|
50.4%
|
Operating income
(loss)
|
|
$
|
34.6
|
|
$
|
3.7
|
|
$
|
4.7
|
|
$
|
(15.8)
|
|
$
|
27.2
|
Depreciation and
Amortization
|
|
$
|
41.7
|
|
$
|
6.0
|
|
$
|
1.7
|
|
$
|
-
|
|
$
|
49.4
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended October 1, 2016
|
(in millions of
U.S. dollars)
|
|
Route Based
Services
|
|
Coffee, Tea
and Extract
Solutions
|
|
All
Other
|
|
Corporate
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery
|
|
$
|
235.9
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
235.9
|
Coffee and tea
services
|
|
38.9
|
|
72.0
|
|
2.0
|
|
-
|
|
112.9
|
Retail
|
|
42.9
|
|
-
|
|
10.0
|
|
-
|
|
52.9
|
Other
|
|
31.5
|
|
15.3
|
|
28.2
|
|
-
|
|
75.0
|
Total
1
|
|
$
|
349.2
|
|
$
|
87.3
|
|
$
|
40.2
|
|
$
|
-
|
|
$
|
476.7
|
Gross Profit
2
|
|
$
|
216.5
|
|
$
|
24.5
|
|
$
|
6.7
|
|
$
|
-
|
|
$
|
247.7
|
Gross Margin
%
|
|
62.0%
|
|
28.1%
|
|
16.7%
|
|
-
|
|
52.0%
|
Operating income
(loss)
|
|
$
|
21.2
|
|
$
|
(0.1)
|
|
$
|
0.7
|
|
$
|
(8.2)
|
|
$
|
13.6
|
Depreciation and
Amortization
|
|
$
|
36.9
|
|
$
|
2.8
|
|
$
|
1.5
|
|
$
|
-
|
|
$
|
41.2
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2017
|
(in millions of
U.S. dollars)
|
|
Route Based
Services
|
|
Coffee, Tea
and Extract
Solutions
|
|
All
Other
|
|
Corporate
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery
|
|
$
|
753.7
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
753.7
|
Coffee and tea
services
|
|
134.9
|
|
369.6
|
|
2.0
|
|
-
|
|
506.5
|
Retail
|
|
127.8
|
|
-
|
|
33.9
|
|
-
|
|
161.7
|
Other
|
|
118.5
|
|
70.6
|
|
87.4
|
|
-
|
|
276.5
|
Total
1
|
|
$
|
1,134.9
|
|
$
|
440.2
|
|
$
|
123.3
|
|
$
|
-
|
|
$
|
1,698.4
|
Gross Profit
2
|
|
$
|
710.9
|
|
$
|
117.9
|
|
$
|
19.9
|
|
$
|
-
|
|
$
|
848.7
|
Gross Margin
%
|
|
62.6%
|
|
26.8%
|
|
16.1%
|
|
-
|
|
50.0%
|
Operating income
(loss)
|
|
$
|
66.3
|
|
$
|
13.3
|
|
$
|
6.9
|
|
$
|
(37.6)
|
|
$
|
48.9
|
Depreciation and
Amortization
|
|
$
|
119.1
|
|
$
|
17.2
|
|
$
|
5.5
|
|
$
|
-
|
|
$
|
141.8
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended October 1, 2016
|
(in millions of
U.S. dollars)
|
|
Route Based
Services
|
|
Coffee, Tea
and Extract
Solutions
|
|
All
Other
|
|
Corporate
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery
|
|
$
|
575.1
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
575.1
|
Coffee and tea
services
|
|
100.4
|
|
72.0
|
|
2.0
|
|
-
|
|
174.4
|
Retail
|
|
127.7
|
|
-
|
|
37.8
|
|
-
|
|
165.5
|
Other
|
|
79.1
|
|
15.3
|
|
92.6
|
|
-
|
|
187.0
|
Total
1
|
|
$
|
882.3
|
|
$
|
87.3
|
|
$
|
132.4
|
|
$
|
-
|
|
$
|
1,102.0
|
Gross Profit
2
|
|
$
|
541.7
|
|
$
|
24.5
|
|
$
|
25.4
|
|
$
|
-
|
|
$
|
591.6
|
Gross Margin
%
|
|
61.4%
|
|
28.1%
|
|
19.2%
|
|
-
|
|
53.7%
|
Operating income
(loss)
|
|
$
|
44.7
|
|
$
|
(0.1)
|
|
$
|
7.5
|
|
$
|
(33.3)
|
|
$
|
18.8
|
Depreciation and
Amortization
|
|
$
|
94.6
|
|
$
|
2.8
|
|
$
|
5.2
|
|
$
|
-
|
|
$
|
102.6
|
1 Includes
related party concentrate sales to discontinued
operations.
|
2
Gross profit from external and related party revenues.
|
COTT
CORPORATION
|
|
|
|
|
|
|
|
EXHIBIT
5
|
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 Nine
Months Ended
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
September 30,
2017
|
|
October 1,
2016
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
|
1.6
|
|
$
|
(4.0)
|
|
$
|
(13.1)
|
|
$
|
(5.6)
|
Interest expense,
net
|
|
23.2
|
|
14.5
|
|
62.1
|
|
29.2
|
Income tax expense
(benefit)
|
|
0.9
|
|
2.9
|
|
1.0
|
|
(4.8)
|
Depreciation &
amortization
|
|
49.4
|
|
41.2
|
|
141.8
|
|
102.6
|
EBITDA
|
|
$
|
75.1
|
|
$
|
54.6
|
|
$
|
191.8
|
|
$
|
121.4
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs 1, 3
|
|
3.2
|
|
7.4
|
|
17.2
|
|
20.5
|
Share-based
compensation costs 2, 4
|
|
1.9
|
|
0.2
|
|
8.7
|
|
4.4
|
Inventory step-up
5
|
|
-
|
|
4.2
|
|
-
|
|
4.7
|
Unrealized commodity
hedging gain, net 6
|
|
(0.4)
|
|
(1.0)
|
|
(1.9)
|
|
(0.8)
|
Foreign exchange and
other (gains) losses, net 7
|
|
(0.2)
|
|
0.8
|
|
(1.1)
|
|
(0.5)
|
Loss on disposal of
property, plant & equipment, net 8
|
|
-
|
|
1.4
|
|
5.7
|
|
4.6
|
Gain on
extinguishment of long-term debt, net 9
|
|
-
|
|
-
|
|
(1.5)
|
|
-
|
Other adjustments
10
|
|
4.3
|
|
0.9
|
|
6.3
|
|
1.8
|
Adjusted
EBITDA
|
|
$
|
83.9
|
|
$
|
68.5
|
|
$
|
225.2
|
|
$
|
156.1
|
11.
Includes $0.2 million and $2.4 million of share-based compensation
costs for the three and nine months ended September 30, 2017,
respectively, related to awards granted in connection with the
acquisitions of our S&D and Eden businesses, and a reduction of
$1.1 million and $0.4 million share-based compensation costs for
the three and nine months ended October 1, 2016, respectively,
related to awards granted in connection with the acquisitions of
our S&D, Eden and DSS businesses.
|
|
2Effective
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 Nine
Months Ended
|
|
|
Statements of
Operations
|
|
September 30,
2017
|
|
October 1,
2016
|
|
September 30,
2017
|
|
October 1,
2016
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
3Acquisition and integration
costs
|
|
Acquisition and
integration expenses
|
|
$
|
3.2
|
|
$
|
7.4
|
|
$
|
17.2
|
|
$
|
20.5
|
4Share-based compensation costs
|
|
Selling, general and
administrative expenses
|
|
1.9
|
|
0.2
|
|
8.7
|
|
4.4
|
5Inventory
step-up
|
|
Cost of
sales
|
|
-
|
|
4.2
|
|
-
|
|
4.7
|
6Unrealized commodity hedging gain,
net
|
|
Cost of
sales
|
|
(0.4)
|
|
(1.0)
|
|
(1.9)
|
|
(0.8)
|
7Foreign
exchange and other (gains) losses, net
|
|
Other expense
(income), net
|
|
(0.2)
|
|
0.8
|
|
(1.1)
|
|
(0.5)
|
8Loss on
disposal of property, plant & equipment, net
|
|
Loss on disposal of
property,
|
|
|
|
|
|
|
|
|
|
|
plant &
equipment, net
|
|
-
|
|
1.4
|
|
5.7
|
|
4.6
|
9Gain on
extinguishment of long-term debt, net
|
|
Other expense
(income), net
|
|
-
|
|
-
|
|
(1.5)
|
|
-
|
10Other
adjustments
|
|
Selling, general and
administrative expenses
|
|
2.7
|
|
0.5
|
|
4.8
|
|
1.4
|
|
|
Other expense
(income), net
|
|
1.6
|
|
0.4
|
|
1.5
|
|
0.4
|
COTT
CORPORATION
|
|
|
|
EXHIBIT
6
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - FREE CASH FLOW AND
|
|
ADJUSTED FREE CASH
FLOW
|
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
|
|
|
|
Net cash provided
by operating activities from
|
|
|
|
|
continuing
operations
|
|
$
|
46.2
|
|
$
|
51.1
|
|
Less: Additions to
property, plant, and equipment
|
|
(38.2)
|
|
(32.4)
|
Free Cash
Flow
|
|
$
|
8.0
|
|
$
|
18.7
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
Acquisition and
integration cash costs
|
|
4.6
|
|
14.1
|
Adjusted Free Cash
Flow
|
|
$
|
12.6
|
|
$
|
32.8
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
|
|
|
continuing
operations
|
|
$
|
138.7
|
|
$
|
71.9
|
|
Less: Additions to
property, plant, and equipment
|
|
$
|
(97.1)
|
|
(69.3)
|
Free Cash
Flow
|
|
$
|
41.6
|
|
$
|
2.6
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
Acquisition and
integration cash costs
|
|
16.9
|
|
16.0
|
Adjusted Free Cash
Flow
|
|
$
|
58.5
|
|
$
|
18.6
|
COTT
CORPORATION
|
|
|
|
|
|
|
|
EXHIBIT
7
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - ADJUSTED NET LOSS
|
|
|
|
|
(in millions of
U.S. dollars, except share and per share amounts)
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the Nine
Months Ended
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
September 30,
2017
|
|
October 1,
2016
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
|
1.6
|
|
$
|
(4.0)
|
|
$
|
(13.1)
|
|
$
|
(5.6)
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
|
3.2
|
|
7.4
|
|
17.2
|
|
20.5
|
Inventory
step-up
|
|
-
|
|
4.2
|
|
-
|
|
4.7
|
Unrealized commodity
hedging gain, net
|
|
(0.4)
|
|
(1.0)
|
|
(1.9)
|
|
(0.8)
|
Foreign exchange and
other (gains) losses, net
|
|
(0.2)
|
|
0.8
|
|
(1.1)
|
|
(0.5)
|
Loss on disposal of
property, plant & equipment, net
|
|
-
|
|
1.4
|
|
5.7
|
|
4.6
|
Interest payment on
2024 Notes1
|
|
-
|
|
2.4
|
|
-
|
|
2.4
|
Interest expense on
2020 Notes2
|
|
-
|
|
(10.7)
|
|
(9.5)
|
|
(31.9)
|
Tax valuation
allowance
|
|
-
|
|
8.5
|
|
-
|
|
8.5
|
Gain on
extinguishment of long-term debt, net
|
|
-
|
|
-
|
|
(1.5)
|
|
-
|
Other
adjustments
|
|
4.3
|
|
0.9
|
|
6.3
|
|
1.8
|
Adjustments for tax
effect 3
|
|
0.1
|
|
(4.5)
|
|
(1.4)
|
|
(10.7)
|
Adjusted net
income (loss) from continuing operations
|
|
$
|
8.6
|
|
$
|
5.4
|
|
$
|
0.7
|
|
$
|
(7.0)
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) per common share from
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.06
|
|
$
|
0.04
|
|
$
|
0.01
|
|
$
|
(0.06)
|
|
Diluted
|
|
$
|
0.06
|
|
$
|
0.04
|
|
$
|
0.01
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (millions)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
139.2
|
|
138.2
|
|
139.0
|
|
124.9
|
|
Diluted
|
|
141.0
|
|
139.3
|
|
140.2
|
|
124.9
|
1Represents the interest paid on
the 2024 Notes while the proceeds were held in escrow prior to
funding a portion of the purchase price for the acquisition of our
Eden business.
|
|
2Represents the interest expense incurred
on the 2020 Notes which are recorded within discontinued
operations. In March 2017, the 2020 Notes were redeemed in full
with proceeds from the issuance of the 2025 Notes which are
recorded in continuing operations. These adjustments move the 2020
Notes into continued operations in order to have both the 2020
Notes and the 2025 Notes within the same area of financial
reporting.
|
|
3Reflects
tax effect of adjustments at the statutory tax rate within the
applicable tax jurisdiction.
|
COTT CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT
8
|
SUPPLEMENTARY
INFORMATION - TOTAL REVENUES (CONTINUING AND DISCONTINUED
OPERATIONS)
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30, 2017
|
|
For the Three
Months Ended October 1, 2016
|
|
Continuing
Operations
|
Discontinued
Operations
|
Intercompany
Elimination
|
Total
Company
|
|
Continuing
Operations
|
Discontinued
Operations
|
Intercompany
Elimination
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
580.9
|
$
|
425.6
|
$
|
(11.8)
|
$
|
994.7
|
|
$
|
476.7
|
$
|
419.3
|
$
|
(10.9)
|
$
|
885.1
|
COTT
CORPORATION
|
|
|
|
EXHIBIT
9
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION &
|
AMORTIZATION -
TOTAL COMPANY (CONTINUING OPERATIONS AND DISCONTINUED
OPERATIONS.
|
(EBITDA)
|
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
|
|
|
|
Net income (loss)
attributed to Cott Corporation
|
|
$
|
42.5
|
|
$
|
(2.6)
|
Interest expense,
net
|
|
31.7
|
|
34.4
|
Income tax (benefit)
expense
|
|
(30.0)
|
|
4.5
|
Depreciation &
amortization
|
|
70.7
|
|
63.2
|
Net income
attributable to non-controlling interests
|
|
2.1
|
|
1.5
|
EBITDA
|
|
$
|
117.0
|
|
$
|
101.0
|
|
|
|
|
|
Acquisition and
integration costs
|
|
7.7
|
|
7.8
|
Share-based
compensation expense
|
|
2.7
|
|
-
|
Inventory
step-up
|
|
-
|
|
4.2
|
Unrealized commodity
hedging gain, net
|
|
(0.4)
|
|
(1.0)
|
Foreign exchange and
other gains, net
|
|
(6.9)
|
|
(1.4)
|
Loss on disposal of
property, plant & equipment, net
|
|
-
|
|
0.8
|
Other
adjustments
|
|
6.5
|
|
(0.6)
|
Adjusted
EBITDA
|
|
$
|
126.6
|
|
$
|
110.8
|
CONTINUING
OPERATIONS - ROUTE BASED SERVICES AND COFFEE, TEA AND EXTRACT
SOLUTIONS
|
|
|
EXHIBIT
10
|
SUPPLEMENTARY
INFORMATION - PRO FORMA REVENUE
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DS
Services
|
|
Total
|
|
Eden
|
|
Route
Based
|
|
S&D
|
|
|
|
|
U.S.
|
|
Canada
|
|
DS
Services
|
|
Springs
|
|
Services
|
|
Coffee and
Tea
|
|
Total
|
For the Three
Months Ended September 30, 2017
|
|
$
|
271.9
|
|
$
|
16.8
|
|
$
|
288.7
|
|
$
|
108.6
|
|
$
|
397.3
|
|
$
|
143.4
|
|
$
|
540.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma For the
Three Months Ended October 1, 2016
|
|
$
|
262.3
|
|
$
|
16.9
|
|
$
|
279.2
|
|
$
|
105.7
|
|
$
|
384.9
|
|
$
|
133.5
|
|
$
|
518.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage
Change
|
|
3.7%
|
|
-0.6%
|
|
3.4%
|
|
2.7%
|
|
3.2%
|
|
7.4%
|
|
4.3%
|
SOURCE Cott Corporation