(Unless stated otherwise, all second quarter 2019 comparisons
are relative to the second quarter of 2018; all information is in
U.S. dollars.)
TORONTO and TAMPA, FL, Aug. 8,
2019 /PRNewswire/ - Cott Corporation (NYSE:COT;
TSX:BCB) today announced its results for the second quarter ended
June 29, 2019.
"We are pleased with our top and bottom line performance during
the quarter. Both our Route Based Services and our Coffee, Tea and
Extract Solutions segments delivered 6% adjusted revenue growth for
the quarter. In addition, the total company delivered
adjusted EBITDA growth for the quarter," commented Tom Harrington, Cott's Chief Executive Officer.
"We remain confident in our outlook for 2019 and 2020 as well as
our ability to deliver long-term shareholder value," continued Mr.
Harrington.
SECOND QUARTER 2019 GLOBAL PERFORMANCE
- Revenue was flat at $604 million
(increased 6% excluding the impact of foreign exchange, the
divested Cott Beverages LLC business and the change in average cost
of coffee) driven by organic growth within both the Route Based
Services and the Coffee, Tea and Extract Solutions reporting
segments, as well as the benefit of acquisitions, including
Mountain Valley. Revenue growth by segment in the quarter is
tabulated below:
Consolidated
|
|
|
|
|
Revenue
Bridge
|
|
|
|
∆%
|
2018 Q2
Revenue
|
$
|
603.6
|
|
|
Divested Cott
Beverages LLC business
|
|
-21.9
|
|
|
2018 Q2 adjusted
revenue
|
$
|
581.7
|
|
|
|
|
|
|
|
Route Based
Services
|
|
+24.1
|
|
|
Coffee, Tea and
Extract Solutions
|
|
+8.6
|
|
|
Change before
adjustments
|
|
+32.7
|
|
6%
|
Foreign exchange
(a)
|
|
-6.2
|
|
|
Change in average
green coffee commodity pass-through costs
|
|
-4.1
|
|
|
|
|
|
|
|
2019 Q2
Revenue
|
$
|
604.1
|
|
|
|
|
|
|
|
(a) See Exhibit 5 for details by
reporting segment
|
|
|
|
|
- Gross profit increased 4% to $313
million (5% excluding the divested Cott Beverages LLC
business). Gross margin as a percentage of revenue increased 190
basis points to 51.8% compared to 49.9%. Excluding Cott Beverages
LLC, which was sold on February 8,
2019, gross margin as a percentage of revenue increased 50
basis points to 51.8% compared to 51.3% driven primarily by
improved operating leverage within our operations, offset in part
by foreign exchange headwinds.
- SG&A expenses increased to $284
million compared to $275
million due to the addition of Mountain Valley as well as
general inflation (which was mitigated through pricing actions),
offset in part by the sale of Cott Beverages LLC and a foreign
exchange benefit.
- Other income was $2 million
compared to $12 million partly due to
a gain recorded in the prior year relating to the sale of
PolyCycle.
- Reported net income and net income per diluted share were
$4 million and $0.03, respectively, compared to reported net
income and net income per diluted share of $12 million and $0.09, respectively. Adjusted EBITDA was
$84 million compared to $81 million as the growth in revenue and
resulting operational leverage was offset in part by an adverse
foreign exchange impact.
- Net cash provided by operating activities of $12 million, less $28
million of capital expenditures, resulted in ($16) million of free cash flow, or ($12) million of adjusted free cash flow
(adjusting for the items set forth on Exhibit 7), compared to
adjusted free cash flow of $12
million in the prior year due to the timing of working
capital.
SECOND QUARTER 2019 REPORTING SEGMENT
PERFORMANCE
Route Based Services
- Revenue increased 4% (6% excluding the impact of foreign
exchange) to $456 million due to
organic growth in bottled water Home & Office Delivery ("HOD
Water") driven by both volume growth and pricing benefits as
well as growth from acquisitions. A detailed breakdown is tabulated
below.
Route Based
Services
|
|
|
|
|
Revenue
Bridge
|
|
|
|
∆%
|
2018 Q2
Revenue
|
|
$
|
437.7
|
|
|
HOD Water
related
|
|
+15.7
|
|
|
Customer
Growth/Volume
|
+6.4
|
|
|
|
Price/Mix
|
+5.7
|
|
|
|
Mountain Valley HOD
Water
|
+3.6
|
|
|
|
Other
|
|
+8.4
|
|
|
Change excluding
foreign exchange impact
|
|
+24.1
|
|
6%
|
Foreign exchange
impact
|
|
-6.2
|
|
|
2019 Q2
Revenue
|
|
$
|
455.6
|
|
4%
|
- Gross profit increased 4% to $272
million, driven primarily by revenue growth. Gross profit as
a percentage of revenue was roughly flat at 59.6%.
- SG&A expenses increased to $238
million compared to $229
million due primarily to the addition of Mountain Valley as
well as general inflation (which was mitigated through pricing
actions), offset in part by a foreign exchange benefit. SG&A
expenses as a percentage of revenue were roughly flat at 52.2% (see
Exhibit 4).
- Operating income increased 5% to $29
million compared to $28
million, while adjusted EBITDA increased 3% to $80 million compared to $78 million, as revenue growth and the
corresponding operational leverage was partially offset by a
negative foreign exchange impact.
Coffee, Tea and Extract Solutions
- Revenue increased 3% (6% adjusting for the change in average
cost of coffee) to $150 million
driven primarily by 3% growth in coffee pounds sold and 24% volume
growth in liquid coffee and extracts, partially offset by the
competitive pricing environment within the on-the-go roast and
ground coffee market. A detailed breakdown is tabulated below.
Coffee, Tea and
Extract Solutions
|
|
|
|
Revenue
Bridge
|
|
|
∆%
|
2018 Q2
Revenue
|
$
|
145.5
|
|
|
Coffee
volume
|
+2.8
|
|
|
Coffee
price/mix
|
+2.5
|
|
|
Liquid coffee and
extracts
|
+2.7
|
|
|
Other
|
+0.6
|
|
|
Change excluding
change in average green coffee
commodity pass-through costs
|
+8.6
|
|
6%
|
Change in average
green coffee commodity pass-through costs
|
-4.1
|
|
|
2019 Q2
Revenue
|
$
|
150.0
|
|
3%
|
- Gross profit was $42 million
compared to $37 million and gross
margin as a percentage of revenue increased to 27.7% compared to
25.7% driven primarily by leveraging the increased volumes
generated during the quarter.
- SG&A expenses were $39
million compared to $34
million driven primarily by increased selling and operating
costs which supported the increased volume and revenue growth of
the business segment.
- Operating income and adjusted EBITDA were flat at $3 million and $9
million, respectively, as the growth in volume which drove
increased leverage and gross profit was offset by the increased
selling and operating costs associated with driving the volume
growth.
2019 FULL YEAR REVENUE AND FREE CASH FLOW, FOREIGN EXCHANGE
AND COFFEE COMMODITY COSTS
Cott continues to target full year 2019 consolidated revenue in
excess of $2.4 billion and adjusted
free cash flow of more than $150
million (when excluding acquisition, integration and other
one-time cash costs). The targets reflect the sale of Cott
Beverages LLC which represented over $80
million in annual revenue, an expected foreign exchange
headwind of approximately 1% on a full year consolidated basis and
between 0.5% and 1% lowering of consolidated revenues with a
corresponding reduction to cost of goods sold on a full year basis
as green coffee commodity market costs have continued
to decline during 2019.
SHARE REPURCHASE PROGRAM
Cott repurchased approximately 1.4 million shares at an average
price of $13.92 totaling
approximately $20 million during the
second quarter under its previously announced share repurchase
program.
Cott's Board of Directors approved a 12-month share
repurchase program of up to $50
million that commenced on December
14, 2018 and replaced the then-existing program, which was
scheduled to expire on May 6, 2019.
Cott has utilized all funds within this program and will continue
to review ongoing market conditions for the opportunity to begin a
similar program in the future. Shares purchased pursuant to
the share repurchase program were subsequently cancelled.
SECOND QUARTER 2019 RESULTS CONFERENCE CALL
Cott Corporation will host a conference call today, August 8, 2019, 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: 2096439
A slide presentation and 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 water, coffee, tea, extracts and filtration service
company with a leading volume-based national presence in the North
American and European home and office delivery industry for bottled
water, and a leader in custom coffee roasting, iced tea blending,
and extract solutions for the U.S. foodservice industry. Our
platform reaches over 2.5 million customers or delivery points
across North America and
Europe and is 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, results of the divested Cott Beverages LLC
business, and the change in average costs of coffee, as well as
other items identified on the exhibits hereto, to separate the
impact of these factors from Cott's results of operations.
Cott excludes from GAAP gross profit the results of the
divested Cott Beverages LLC business to separate the impact of this
divested business from Cott's results of operations. Cott
utilizes EBITDA and adjusted EBITDA on a global and
segment 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 (used in) operating activities from continuing operations
determined in accordance with GAAP by excluding additions to
property, plant and equipment to present free cash flow, and by
excluding acquisition and integration cash costs, a working
capital adjustment related to the Concentrate Supply Agreement with
Refresco, and other cash inflows to present adjusted free cash
flow, which management believes provides useful information to
investors in assessing our performance, comparing our performance
to the performance of our peer group and assessing our ability to
service debt and finance strategic opportunities, which include
investing in our business, making strategic acquisitions, paying
dividends, repurchasing common shares 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 opportunity to begin a share repurchase
program in the future, the execution of our strategic priorities,
future financial and operating trends and results (including Cott's
outlook on 2019 adjusted revenue and adjusted free cash flow) 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 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; potential liabilities associated with
our recent divestitures; our ability to realize the revenue and
cost synergies of our acquisitions because of integration
difficulties and other challenges; 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 and other currencies, and the exchange between
the British pound sterling and the Euro; our ability to maintain
favorable arrangements and relationships with our suppliers; 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; the incurrence of substantial
indebtedness to finance our acquisitions; the impact on our
financial results from uncertainty in the financial markets and
other adverse changes in general economic conditions; any
disruption to production at our 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
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; increased tax liabilities in the various
jurisdictions in which we operate; the impact of the 2017 Tax Cuts
and Jobs Act on our tax obligations and effective tax rate; and
credit rating changes.
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
|
|
June 29,
2019
|
|
June 30,
2018
|
|
June 29,
2019
|
|
June 30,
2018
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
604.1
|
|
$
|
603.6
|
|
$
|
1,178.2
|
|
$
|
1,164.4
|
Cost of
sales
|
291.0
|
|
302.2
|
|
582.2
|
|
589.5
|
Gross
profit
|
313.1
|
|
301.4
|
|
596.0
|
|
574.9
|
Selling, general and
administrative expenses
|
284.2
|
|
275.2
|
|
556.3
|
|
536.3
|
Loss on disposal of
property, plant and equipment, net
|
1.6
|
|
1.3
|
|
3.5
|
|
2.6
|
Acquisition and
integration expenses
|
2.7
|
|
4.2
|
|
7.5
|
|
9.2
|
Operating
income
|
24.6
|
|
20.7
|
|
28.7
|
|
26.8
|
Other (income)
expense, net
|
(2.4)
|
|
(12.2)
|
|
3.1
|
|
(32.4)
|
Interest expense,
net
|
19.1
|
|
18.6
|
|
38.4
|
|
39.4
|
Income (loss) from
continuing operations before income taxes
|
7.9
|
|
14.3
|
|
(12.8)
|
|
19.8
|
Income tax
expense
|
3.5
|
|
2.1
|
|
2.5
|
|
3.0
|
Net income (loss)
from continuing operations
|
$
|
4.4
|
|
$
|
12.2
|
|
$
|
(15.3)
|
|
$
|
16.8
|
Net (loss) income
from discontinued operations, net of income taxes
|
—
|
|
(1.4)
|
|
|
—
|
|
356.0
|
Net income
(loss)
|
$
|
4.4
|
|
$
|
10.8
|
|
$
|
(15.3)
|
|
$
|
372.8
|
Less: Net income
attributable to non-controlling interests - discontinued
operations
|
—
|
|
—
|
|
—
|
|
0.6
|
Net income (loss)
attributable to Cott Corporation
|
$
|
4.4
|
|
$
|
10.8
|
|
$
|
(15.3)
|
|
$
|
372.2
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share attributable to Cott Corporation
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.03
|
|
$
|
0.09
|
|
$
|
(0.11)
|
|
$
|
0.12
|
Discontinued
operations
|
$
|
—
|
|
$
|
(0.01)
|
|
$
|
—
|
|
$
|
2.54
|
Net income
(loss)
|
$
|
0.03
|
|
$
|
0.08
|
|
$
|
(0.11)
|
|
$
|
2.66
|
Diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.03
|
|
$
|
0.09
|
|
$
|
(0.11)
|
|
$
|
0.12
|
Discontinued
operations
|
$
|
—
|
|
$
|
(0.01)
|
|
$
|
—
|
|
$
|
2.50
|
Net income
(loss)
|
$
|
0.03
|
|
$
|
0.08
|
|
$
|
(0.11)
|
|
$
|
2.62
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
135,569
|
|
139,768
|
|
|
135,758
|
|
139,860
|
Diluted
|
137,306
|
|
141,661
|
|
|
135,758
|
|
142,120
|
COTT
CORPORATION
|
|
|
EXHIBIT
2
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
(in millions of
U.S. dollars, except share amounts, U.S. GAAP)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
June 29,
2019
|
|
December 29,
2018
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
113.4
|
|
$
|
170.8
|
Accounts receivable,
net of allowance of $8.4 ($9.6 as of December 29, 2018)
|
308.4
|
|
308.3
|
Inventories
|
130.1
|
|
129.6
|
Prepaid expenses and
other current assets
|
32.9
|
|
27.2
|
Total current
assets
|
584.8
|
|
635.9
|
Property, plant and
equipment, net
|
643.7
|
|
624.7
|
Operating lease
right-of-use-assets
|
205.1
|
|
—
|
Goodwill
|
1,163.7
|
|
1,143.9
|
Intangible assets,
net
|
713.4
|
|
739.2
|
Deferred tax
assets
|
0.1
|
|
0.1
|
Other long-term
assets, net
|
21.7
|
|
31.7
|
Total
assets
|
$
|
3,332.5
|
|
$
|
3,175.5
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
borrowings
|
93.8
|
|
89.0
|
Current maturities of
long-term debt
|
5.0
|
|
3.0
|
Accounts payable and
accrued liabilities
|
438.4
|
|
469.0
|
Current operating
lease obligations
|
42.9
|
|
—
|
Total current
liabilities
|
580.1
|
|
561.0
|
Long-term
debt
|
1,261.7
|
|
1,250.2
|
Operating lease
obligations
|
167.8
|
|
—
|
Deferred tax
liabilities
|
127.5
|
|
124.3
|
Other long-term
liabilities
|
55.5
|
|
69.6
|
Total
liabilities
|
2,192.6
|
|
2,005.1
|
Equity
|
|
|
|
Common shares, no par
value - 134,638,000 (December 29, 2018 - 136,195,108) shares
issued
|
890.0
|
|
899.4
|
Additional
paid-in-capital
|
74.4
|
|
73.9
|
Retained
earnings
|
263.1
|
|
298.8
|
Accumulated other
comprehensive loss
|
(87.6)
|
|
(101.7)
|
Total Cott
Corporation equity
|
1,139.9
|
|
1,170.4
|
Total liabilities
and equity
|
$
|
3,332.5
|
|
$
|
3,175.5
|
COTT
CORPORATION
|
|
|
|
|
|
EXHIBIT
3
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
(in millions
of U.S. dollars, U.S. GAAP)
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June 29,
2019
|
|
June 30,
2018
|
|
June 29,
2019
|
|
June 30,
2018
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities of continuing operations:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
4.4
|
|
$
|
10.8
|
|
$
|
(15.3)
|
|
$
|
372.8
|
Net (loss) income
from discontinued operations, net of income taxes
|
—
|
|
(1.4)
|
|
—
|
|
356.0
|
Net income (loss)
from continuing operations
|
$
|
4.4
|
|
$
|
12.2
|
|
$
|
(15.3)
|
|
$
|
16.8
|
Adjustments to
reconcile net income (loss) from continuing operations to cash
flows from operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
48.9
|
|
48.7
|
|
94.1
|
|
96.1
|
Amortization of
financing fees
|
0.9
|
|
0.8
|
|
1.7
|
|
1.7
|
Share-based
compensation expense
|
3.3
|
|
4.4
|
|
6.8
|
|
7.8
|
(Benefit) provision
for deferred income taxes
|
(2.0)
|
|
2.9
|
|
(5.2)
|
|
2.7
|
Loss (gain) on sale
of business
|
0.6
|
|
(6.0)
|
|
6.0
|
|
(6.0)
|
Gain on
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
(7.1)
|
Loss on disposal of
property, plant and equipment, net
|
1.6
|
|
1.3
|
|
3.5
|
|
2.6
|
Other non-cash
items
|
(3.7)
|
|
(2.2)
|
|
(3.3)
|
|
(2.2)
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(16.2)
|
|
(6.5)
|
|
(14.6)
|
|
(19.2)
|
Inventories
|
(9.5)
|
|
(4.6)
|
|
(16.1)
|
|
(13.7)
|
Prepaid expenses and
other current assets
|
0.6
|
|
(2.3)
|
|
(1.3)
|
|
(6.6)
|
Other
assets
|
0.6
|
|
0.2
|
|
1.3
|
|
1.2
|
Accounts payable and
accrued liabilities and other liabilities
|
(18.0)
|
|
(13.9)
|
|
(22.5)
|
|
(6.2)
|
Net cash provided by
operating activities from continuing operations
|
11.5
|
|
35.0
|
|
35.1
|
|
67.9
|
Cash flows from
investing activities of continuing operations:
|
|
|
|
|
|
|
|
Acquisitions, net of
cash received
|
(21.5)
|
|
(38.8)
|
|
(42.5)
|
|
(66.6)
|
Additions to
property, plant and equipment
|
(27.8)
|
|
(28.9)
|
|
(51.6)
|
|
(58.7)
|
Additions to
intangible assets
|
(2.0)
|
|
(2.0)
|
|
(4.3)
|
|
(4.2)
|
Proceeds from sale of
property, plant and equipment
|
1.0
|
|
1.0
|
|
2.4
|
|
2.9
|
Proceeds from sale of
business, net of cash sold
|
—
|
|
12.8
|
|
50.5
|
|
12.8
|
Other investing
activities
|
—
|
|
0.1
|
|
0.1
|
|
0.3
|
Net cash used in
investing activities from continuing operations
|
(50.3)
|
|
(55.8)
|
|
(45.4)
|
|
(113.5)
|
Cash flows from
financing activities of continuing operations:
|
|
|
|
|
|
|
|
Payments of long-term
debt
|
(1.5)
|
|
(0.6)
|
|
(3.0)
|
|
(263.3)
|
Borrowings under
ABL
|
37.9
|
|
0.4
|
|
62.9
|
|
1.0
|
Payments under
ABL
|
(9.1)
|
|
(0.4)
|
|
(61.9)
|
|
(1.0)
|
Premiums and costs
paid upon extinguishment of long-term debt
|
—
|
|
—
|
|
—
|
|
(12.5)
|
Issuance of common
shares
|
0.3
|
|
2.4
|
|
0.7
|
|
4.2
|
Common shares
repurchased and canceled
|
(20.0)
|
|
(16.1)
|
|
(31.0)
|
|
(21.7)
|
Financing
fees
|
—
|
|
—
|
|
—
|
|
(1.5)
|
Dividends paid to
common shareholders
|
(8.0)
|
|
(8.4)
|
|
(16.2)
|
|
(16.8)
|
Payment of deferred
consideration for acquisitions
|
(0.2)
|
|
(2.8)
|
|
(0.2)
|
|
(2.8)
|
Other financing
activities
|
2.0
|
|
3.4
|
|
3.4
|
|
2.1
|
Net cash provided by
(used in) financing activities from continuing
operations
|
1.4
|
|
(22.1)
|
|
(45.3)
|
|
(312.3)
|
Cash flows from
discontinued operations:
|
|
|
|
|
|
|
|
Operating activities
of discontinued operations
|
(3.2)
|
|
(3.3)
|
|
(3.2)
|
|
(88.0)
|
Investing activities
of discontinued operations
|
—
|
|
—
|
|
—
|
|
1,228.6
|
Financing activities
of discontinued operations
|
—
|
|
—
|
|
—
|
|
(769.7)
|
Net cash (used in)
provided by discontinued operations
|
(3.2)
|
|
(3.3)
|
|
(3.2)
|
|
370.9
|
Effect of exchange
rate changes on cash
|
0.1
|
|
(3.7)
|
|
1.4
|
|
(8.5)
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
(40.5)
|
|
(49.9)
|
|
(57.4)
|
|
4.5
|
Cash and cash
equivalents and restricted cash, beginning of period
|
153.9
|
|
212.3
|
|
170.8
|
|
157.9
|
Cash and cash
equivalents and restricted cash from continuing operations, end of
period
|
$
|
113.4
|
|
$
|
162.4
|
|
$
|
113.4
|
|
$
|
162.4
|
COTT
CORPORATION
|
|
|
|
|
|
|
|
|
|
EXHIBIT
4
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
(in millions of
U.S. dollars, U.S. GAAP)
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 29, 2019
|
|
(in millions of
U.S. dollars)
|
|
|
Route Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Eliminations
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery
|
|
|
$
|
290.6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
290.6
|
Coffee and tea
services
|
|
|
46.9
|
|
120.6
|
|
—
|
|
(1.5)
|
|
166.0
|
Retail
|
|
|
75.8
|
|
—
|
|
—
|
|
—
|
|
75.8
|
Other
|
|
|
42.3
|
|
29.4
|
|
—
|
|
—
|
|
71.7
|
Total
|
|
|
$
|
455.6
|
|
$
|
150.0
|
|
$
|
—
|
|
$
|
(1.5)
|
|
$
|
604.1
|
Gross
Profit
|
|
|
$
|
271.6
|
|
$
|
41.5
|
|
$
|
—
|
|
$
|
—
|
|
$
|
313.1
|
Gross Margin
%
|
|
|
59.6%
|
|
27.7%
|
|
—%
|
|
—
|
|
51.8%
|
Selling, general
and administrative expenses
|
|
|
$
|
237.6
|
|
$
|
38.5
|
|
$
|
8.1
|
|
$
|
—
|
|
$
|
284.2
|
SG&A% of
revenue
|
|
|
52.2%
|
|
25.7%
|
|
N/A
|
|
—%
|
|
47.0%
|
Operating income
(loss)
|
|
|
$
|
29.4
|
|
$
|
3.1
|
|
$
|
(7.9)
|
|
$
|
—
|
|
$
|
24.6
|
Depreciation and
Amortization
|
|
|
$
|
42.9
|
|
$
|
6.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
48.9
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30, 2018
|
|
(in millions of
U.S. dollars)
|
|
|
Route Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Eliminations
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery (a)
|
|
|
$
|
278.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
278.8
|
Coffee and tea
services
|
|
|
49.0
|
|
118.8
|
|
—
|
|
(1.5)
|
|
166.3
|
Retail (a)
|
|
|
74.0
|
|
—
|
|
—
|
|
—
|
|
74.0
|
Other (a)
|
|
|
35.9
|
|
26.7
|
|
21.9
|
|
—
|
|
84.5
|
Total
|
|
|
$
|
437.7
|
|
$
|
145.5
|
|
$
|
21.9
|
|
$
|
(1.5)
|
|
$
|
603.6
|
Gross
Profit
|
|
|
$
|
261.2
|
|
$
|
37.4
|
|
$
|
2.8
|
|
$
|
—
|
|
$
|
301.4
|
Gross Margin
%
|
|
|
59.7%
|
|
25.7%
|
|
12.8%
|
|
—
|
|
49.9%
|
Selling, general
and administrative expenses
|
|
|
$
|
228.8
|
|
$
|
33.8
|
|
$
|
12.6
|
|
$
|
—
|
|
$
|
275.2
|
SG&A% of
revenue
|
|
|
52.3%
|
|
23.2%
|
|
N/A
|
|
—%
|
|
45.6%
|
Operating income
(loss)
|
|
|
$
|
28.1
|
|
$
|
3.2
|
|
$
|
(10.6)
|
|
$
|
—
|
|
$
|
20.7
|
Depreciation and
Amortization
|
|
|
$
|
42.9
|
|
$
|
5.7
|
|
$
|
0.1
|
|
$
|
—
|
|
$
|
48.7
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 29, 2019
|
|
(in millions of
U.S. dollars)
|
|
|
Route Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Eliminations
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery
|
|
|
$
|
549.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
549.2
|
Coffee and tea
services
|
|
|
95.5
|
|
240.8
|
|
—
|
|
(3.1)
|
|
333.2
|
Retail
|
|
|
146.7
|
|
—
|
|
—
|
|
—
|
|
146.7
|
Other
|
|
|
84.7
|
|
57.2
|
|
7.2
|
|
—
|
|
149.1
|
Total
|
|
|
$
|
876.1
|
|
$
|
298.0
|
|
$
|
7.2
|
|
$
|
(3.1)
|
|
$
|
1,178.2
|
Gross
Profit
|
|
|
$
|
514.4
|
|
$
|
81.3
|
|
$
|
0.3
|
|
$
|
—
|
|
$
|
596.0
|
Gross Margin
%
|
|
|
58.7%
|
|
27.3%
|
|
4.2%
|
|
—
|
|
50.6%
|
Selling, general
and administrative expenses
|
|
|
$
|
462.1
|
|
$
|
74.8
|
|
$
|
19.4
|
|
$
|
—
|
|
$
|
556.3
|
SG&A% of
revenue
|
|
|
52.7%
|
|
25.1%
|
|
N/A
|
|
—%
|
|
47.2%
|
Operating income
(loss)
|
|
|
$
|
43.4
|
|
$
|
6.5
|
|
$
|
(21.2)
|
|
$
|
—
|
|
$
|
28.7
|
Depreciation and
Amortization
|
|
|
$
|
82.5
|
|
$
|
11.5
|
|
$
|
0.1
|
|
$
|
—
|
|
$
|
94.1
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2018
|
|
(in millions of
U.S. dollars)
|
|
|
Route Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Eliminations
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
|
|
Home and office
bottled water delivery (a)
|
|
|
$
|
524.3
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
524.3
|
Coffee and tea
services
|
|
|
96.0
|
|
236.0
|
|
—
|
|
(2.5)
|
|
329.5
|
Retail (a)
|
|
|
140.6
|
|
—
|
|
—
|
|
—
|
|
140.6
|
Other (a)
|
|
|
74.9
|
|
55.6
|
|
39.6
|
|
(0.1)
|
|
170.0
|
Total
|
|
|
$
|
835.8
|
|
$
|
291.6
|
|
$
|
39.6
|
|
$
|
(2.6)
|
|
$
|
1,164.4
|
Gross Profit
(b)
|
|
|
$
|
493.7
|
|
$
|
76.1
|
|
$
|
5.1
|
|
$
|
—
|
|
$
|
574.9
|
Gross Margin
%
|
|
|
59.1%
|
|
26.1%
|
|
12.9%
|
|
—
|
|
49.4%
|
Selling, general
and administrative expenses
|
|
|
$
|
443.7
|
|
$
|
68.2
|
|
$
|
24.4
|
|
$
|
—
|
|
$
|
536.3
|
SG&A% of
revenue
|
|
|
53.1%
|
|
23.4%
|
|
N/A
|
|
—%
|
|
46.1%
|
Operating income
(loss)
|
|
|
$
|
42.1
|
|
$
|
7.3
|
|
$
|
(22.6)
|
|
$
|
—
|
|
$
|
26.8
|
Depreciation and
Amortization
|
|
|
$
|
84.3
|
|
$
|
11.4
|
|
$
|
0.4
|
|
$
|
—
|
|
$
|
96.1
|
(a) Revenues by
channel of our Route Based Services reporting segment for the three
and six months ended June 30, 2018 were revised to reclassify $19.3
million and $35.9 of revenue, respectively, from the other channel
to the home and office bottled water delivery channel as these
activities are associated with the home and office bottled water
delivery channel. In addition, for the three and six months ended
June 30, 2018, we reclassified $3.9 million and $7.4 million,
respectively, out of the retail channel and into the other channel
in order to better align the activities of a recent acquisition
with those of our U.S. Route Based Services business.
|
|
(b) Includes related
party concentrate sales to discontinued operations.
|
COTT
CORPORATION
|
|
|
|
|
|
|
EXHIBIT
5
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - ANALYSIS OF REVENUE BY REPORTING
SEGMENT
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
U.S. dollars, except percentage amounts)
|
For the Three
Months Ended June 29, 2019
|
|
Route Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Eliminations
|
|
Cott
(a)
|
Change in
revenue
|
$
|
17.9
|
|
$
|
4.5
|
|
$
|
(21.9)
|
|
$
|
—
|
|
$
|
0.5
|
Impact of foreign
exchange (b)
|
$
|
6.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6.2
|
Change excluding
foreign exchange
|
$
|
24.1
|
|
$
|
4.5
|
|
$
|
(21.9)
|
|
$
|
—
|
|
$
|
6.7
|
Percentage change in
revenue
|
4.1%
|
|
3.1%
|
|
(100.0)%
|
|
—%
|
|
0.1%
|
Percentage change in
revenue excluding foreign exchange
|
5.5%
|
|
3.1%
|
|
(100.0)%
|
|
—%
|
|
1.1%
|
|
(a) Cott includes the
following reporting segments: Route Based Services, Coffee, Tea and
Extract Solutions and All Other.
|
(b) 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
|
|
June 29,
2019
|
|
June 30,
2018
|
|
June 29,
2019
|
|
June 30,
2018
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
$
|
4.4
|
|
$
|
12.2
|
|
$
|
(15.3)
|
|
$
|
16.8
|
Interest expense,
net
|
19.1
|
|
18.6
|
|
38.4
|
|
39.4
|
Income tax
expense
|
3.5
|
|
2.1
|
|
2.5
|
|
3.0
|
Depreciation and
amortization
|
48.9
|
|
48.7
|
|
94.1
|
|
96.1
|
EBITDA
|
$
|
75.9
|
|
$
|
81.6
|
|
$
|
119.7
|
|
$
|
155.3
|
|
|
|
|
|
|
|
Acquisition and
integration costs (a), (c)
|
2.7
|
|
4.2
|
|
7.5
|
|
9.2
|
Share-based
compensation costs (d)
|
3.1
|
|
3.6
|
|
6.4
|
|
6.0
|
Commodity hedging
loss, net (e)
|
—
|
|
—
|
|
—
|
|
0.3
|
Foreign exchange and
other (gains) losses, net (f)
|
(0.7)
|
|
(3.0)
|
|
0.3
|
|
(11.2)
|
Loss on disposal of
property, plant and equipment, net (g)
|
1.6
|
|
1.3
|
|
3.5
|
|
2.6
|
Gain on
extinguishment of long-term debt (h)
|
—
|
|
—
|
|
—
|
|
(7.1)
|
Loss (gain) on sale
of business (i)
|
0.6
|
|
(6.0)
|
|
6.0
|
|
(6.0)
|
Cott Beverages LLC
(b), (j)
|
—
|
|
(1.4)
|
|
0.4
|
|
(1.9)
|
Other adjustments,
net (k)
|
0.8
|
|
1.1
|
|
3.1
|
|
(1.8)
|
Adjusted
EBITDA
|
$
|
84.0
|
|
$
|
81.4
|
|
$
|
146.9
|
|
$
|
145.4
|
(a) Includes $0.2
million and $0.4 million of share-based compensation costs for the
three and six months ended June 29, 2019, respectively, related to
awards
granted in connection with the acquisition of our S&D and Eden
businesses and $0.8 million and $1.8 million of share-based
compensation costs for the three and
six months ended June 30, 2018, respectively, related to awards
granted in connection with the acquisition of our S&D and Eden
businesses
|
(b) Impact on our
operations related to the Cott Beverages LLC business, which was
sold on February 8, 2019
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
Location in
Consolidated Statements of Operations
|
|
June 29,
2019
|
|
June 30,
2018
|
|
June 29,
2019
|
|
June 30,
2018
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(c) Acquisition and
integration costs
|
Acquisition and
integration expenses
|
|
$
|
2.7
|
|
$
|
4.2
|
|
$
|
7.5
|
|
$
|
9.2
|
(d) Share-based
compensation costs
|
Selling, general and
administrative expenses
|
|
3.1
|
|
3.6
|
|
6.4
|
|
6.0
|
(e) Commodity hedging
loss, net
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
0.3
|
(f) Foreign exchange
and other (gains) losses, net
|
Other (income)
expense, net
|
|
(0.7)
|
|
(3.0)
|
|
0.3
|
|
(11.2)
|
(g) Loss on disposal
of property, plant and equipment, net
|
Loss on disposal of
property, plant and equipment, net
|
|
1.6
|
|
1.3
|
|
3.5
|
|
2.6
|
(h) Gain on
extinguishment of long-term debt
|
Other (income)
expense, net
|
|
—
|
|
—
|
|
—
|
|
(7.1)
|
(i) Loss (gain) on
sale of business
|
Other (income)
expense, net
|
|
0.6
|
|
(6.0)
|
|
6.0
|
|
(6.0)
|
(j) Cott Beverages
LLC
|
Revenue,
net
|
|
—
|
|
(21.9)
|
|
(7.2)
|
|
(39.6)
|
|
Cost of
sales
|
|
—
|
|
19.0
|
|
6.8
|
|
34.2
|
|
Selling, general and
administrative expenses
|
|
—
|
|
2.2
|
|
1.1
|
|
4.9
|
|
Other (income)
expense, net
|
|
—
|
|
(0.7)
|
|
(0.3)
|
|
(1.4)
|
(k) Other
adjustments, net
|
Other (income)
expense, net
|
|
(2.0)
|
|
(2.7)
|
|
(2.0)
|
|
(6.6)
|
|
Selling, general and
administrative expenses
|
|
2.8
|
|
2.6
|
|
5.1
|
|
3.6
|
|
Cost of
sales
|
|
—
|
|
1.2
|
|
—
|
|
1.2
|
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
|
|
June 29,
2019
|
|
June 30,
2018
|
|
|
|
|
Net cash provided
by operating activities from continuing operations
|
$
|
11.5
|
|
$
|
35.0
|
Less: Additions
to property, plant, and equipment
|
(27.8)
|
|
(28.9)
|
Free Cash
Flow
|
$
|
(16.3)
|
|
$
|
6.1
|
|
|
|
|
Plus:
|
|
|
|
Acquisition and
integration cash costs
|
4.3
|
|
3.8
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
—
|
|
2.2
|
Adjusted Free Cash
Flow
|
$
|
(12.0)
|
|
$
|
12.1
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
June 29,
2019
|
|
June 30,
2018
|
|
|
|
|
Net cash provided
by operating activities from continuing operations
|
$
|
35.1
|
|
$
|
67.9
|
Less: Additions
to property, plant, and equipment
|
(51.6)
|
|
(58.7)
|
Free Cash
Flow
|
$
|
(16.5)
|
|
$
|
9.2
|
|
|
|
|
Plus:
|
|
|
|
Acquisition and
integration cash costs
|
8.6
|
|
9.4
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
—
|
|
11.1
|
Adjusted Free Cash
Flow
|
$
|
(7.9)
|
|
$
|
29.7
|
(a) Increase in
working capital related to the Concentrate Supply Agreement with
Refresco in connection with the Transaction.
|
COTT
CORPORATION
|
EXHIBIT
8
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - ANALYSIS OF REVENUE AND ADJUSTED
REVENUE
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cott
(a)
|
|
Route Based
Services
|
|
Coffee, Tea and
Extract Solutions
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
|
June 29,
2019
|
|
June 30,
2018
|
|
June 29,
2019
|
|
June 30,
2018
|
|
June 29,
2019
|
|
June 30,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
604.1
|
|
$
|
603.6
|
|
$
|
455.6
|
|
$
|
437.7
|
|
$
|
150.0
|
|
$
|
145.5
|
Divested Cott
Beverages LLC business
|
$
|
—
|
|
$
|
(21.9)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
Adjusted
Revenue
|
$
|
604.1
|
|
$
|
581.7
|
|
$
|
455.6
|
|
$
|
437.7
|
|
$
|
150.0
|
|
$
|
145.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in adjusted
revenue
|
$
|
22.4
|
|
|
|
$
|
17.9
|
|
|
|
$
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change
in adjusted revenue
|
3.9%
|
|
|
|
4.1%
|
|
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of foreign
exchange (b)
|
$
|
6.2
|
|
|
|
$
|
6.2
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of change in
average cost of green coffee (c)
|
$
|
4.1
|
|
|
|
$
|
—
|
|
|
|
$
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in adjusted
revenue excluding foreign exchange
and impact of change in average cost of green coffee
|
$
|
32.7
|
|
|
|
$
|
24.1
|
|
|
|
$
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change
in adjusted revenue excluding
foreign exchange and impact of change in average cost
of green coffee
|
5.6%
|
|
|
|
5.5%
|
|
|
|
5.9%
|
|
|
(a) Cott includes the
following reporting segments: Route Based Services, Coffee, Tea and
Extract Solutions and All Other.
|
(b) 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.
|
(c) Impact of change
in average cost of green coffee represents the difference between
the average cost per pound of green coffee in the current period
compared to the average cost per pound of green coffee in the prior
period multiplied by the pounds of coffee sold in the current
period.
|
COTT
CORPORATION
|
|
|
|
|
EXHIBIT
9
|
SUPPLEMENTARY
INFORMATION - NON-GAAP
|
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
June 29,
2019
|
|
Cott
Consolidated
|
|
Divested Business
(a)
|
|
Cott
Adjusted
|
|
|
|
|
|
|
Revenue,
net
|
$
|
604.1
|
|
$
|
—
|
|
$
|
604.1
|
Cost of
sales
|
291.0
|
|
—
|
|
291.0
|
Gross
profit
|
313.1
|
|
—
|
|
313.1
|
Gross margin
%
|
51.8%
|
|
|
|
51.8%
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
284.2
|
|
—
|
|
284.2
|
SG&A% of
revenue
|
47.0%
|
|
|
|
47.0%
|
|
|
|
|
|
|
Loss on disposal of
property, plant and equipment, net
|
1.6
|
|
—
|
|
1.6
|
Acquisition and
integration expenses
|
2.7
|
|
—
|
|
2.7
|
Operating
income
|
24.6
|
|
—
|
|
24.6
|
|
|
|
|
|
|
Other income,
net
|
(2.4)
|
|
—
|
|
(2.4)
|
Depreciation and
Amortization
|
48.9
|
|
—
|
|
48.9
|
EBITDA
|
75.9
|
|
—
|
|
75.9
|
|
|
|
|
|
|
Adjustments
|
8.1
|
|
—
|
|
8.1
|
Adjusted
EBITDA
|
$
|
84.0
|
|
$
|
—
|
|
$
|
84.0
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
June 30,
2018
|
|
Cott
Consolidated
|
|
Divested Business
(a)
|
|
Cott
Adjusted
|
|
|
|
|
|
|
Revenue,
net
|
$
|
603.6
|
|
$
|
21.9
|
|
$
|
581.7
|
Cost of
sales
|
302.2
|
|
19.1
|
|
283.1
|
Gross
profit
|
301.4
|
|
2.8
|
|
298.6
|
Gross margin
%
|
49.9%
|
|
|
|
51.3%
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
275.2
|
|
2.2
|
|
273.0
|
SG&A% of
revenue
|
45.6%
|
|
|
|
46.9%
|
|
|
|
|
|
|
Loss on disposal of
property, plant and equipment, net
|
1.3
|
|
—
|
|
1.3
|
Acquisition and
integration expenses
|
4.2
|
|
—
|
|
4.2
|
Operating
income
|
20.7
|
|
0.6
|
|
20.1
|
|
|
|
|
|
|
Other income,
net
|
(12.2)
|
|
(0.7)
|
|
(11.5)
|
Depreciation and
Amortization
|
48.7
|
|
0.1
|
|
48.6
|
EBITDA
|
81.6
|
|
1.4
|
|
80.2
|
|
|
|
|
|
Adjustments
|
(0.2)
|
|
(1.4)
|
|
1.2
|
Adjusted
EBITDA
|
$
|
81.4
|
|
$
|
—
|
|
$
|
81.4
|
|
|
|
|
|
|
(a) Cott Beverages
LLC
|
|
|
|
|
|
COTT
CORPORATION
|
|
|
|
|
|
EXHIBIT
10
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION & AMORTIZATION (EBITDA)
AND ADJUSTED EBITDA BY REPORTING SEGMENT (a)
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 29, 2019
|
|
Route Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Total
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
29.4
|
|
$
|
3.1
|
|
$
|
(7.9)
|
|
$
|
24.6
|
Other income,
net
|
(1.2)
|
|
(0.2)
|
|
|
(1.0)
|
|
(2.4)
|
Depreciation and
amortization
|
42.9
|
|
6.0
|
|
|
—
|
|
48.9
|
EBITDA
(a)
|
$
|
73.5
|
|
$
|
9.3
|
|
$
|
(6.9)
|
|
$
|
75.9
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
2.9
|
|
—
|
|
|
(0.2)
|
|
2.7
|
Share-based
compensation costs
|
0.7
|
|
0.1
|
|
|
2.3
|
|
3.1
|
Foreign exchange and
other losses (gains), net
|
1.1
|
|
—
|
|
|
(1.8)
|
|
(0.7)
|
Loss (gain) on
disposal of property, plant and equipment, net
|
1.7
|
|
(0.1)
|
|
|
—
|
|
1.6
|
Loss on sale of
business (b)
|
—
|
|
—
|
|
|
0.6
|
|
0.6
|
Other adjustments,
net (c)
|
0.3
|
|
—
|
|
|
0.5
|
|
0.8
|
Adjusted
EBITDA
|
$
|
80.2
|
|
$
|
9.3
|
|
$
|
(5.5)
|
|
$
|
84.0
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30, 2018
|
|
Route Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Total
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
28.1
|
|
$
|
3.2
|
|
$
|
(10.6)
|
|
$
|
20.7
|
Other income,
net
|
(8.5)
|
|
(0.1)
|
|
|
(3.6)
|
|
(12.2)
|
Depreciation and
amortization
|
42.9
|
|
5.7
|
|
|
0.1
|
|
48.7
|
EBITDA
(a)
|
$
|
79.5
|
|
$
|
9.0
|
|
$
|
(6.9)
|
|
$
|
81.6
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
2.9
|
|
0.4
|
|
|
0.9
|
|
4.2
|
Share-based
compensation costs
|
0.8
|
|
—
|
|
|
2.8
|
|
3.6
|
Foreign exchange and
other gains, net
|
(0.1)
|
|
—
|
|
|
(2.9)
|
|
(3.0)
|
Loss on disposal of
property, plant and equipment, net
|
1.3
|
|
—
|
|
|
—
|
|
1.3
|
Gain on sale of
business (b)
|
(6.0)
|
|
—
|
|
|
—
|
|
(6.0)
|
Cott Beverages LLC
(d)
|
—
|
|
—
|
|
|
(1.4)
|
|
(1.4)
|
Other adjustments,
net (e)
|
(0.2)
|
|
—
|
|
|
1.3
|
|
1.1
|
Adjusted
EBITDA
|
$
|
78.2
|
|
$
|
9.4
|
|
$
|
(6.2)
|
|
$
|
81.4
|
|
(a) EBITDA by
reporting segment is derived from operating income as operating
income is the performance measure regularly reviewed by the chief
operating decision maker when evaluating performance of our
reportable segments.
|
(b) Loss (gain) on
sale of business is reflected under other (income) expense, net in
the Consolidated Statements of Operations.
|
(c) Impact of other
adjustments, net for Route Based Services includes $2.3 million
reflected under selling, general and administrative expenses and
$2.0 million of net gains reflected under other (income) expense,
net in the Consolidated Statements of Operations. Impact of other
adjustments, net for All Other is reflected under selling, general
and administrative expenses in the Consolidated Statements of
Operations.
|
(d) Impact on our
operations related to the Cott Beverages LLC business, which was
sold on February 8, 2019.
|
(e) Impact of other
adjustments, net for Route Based Services includes $1.2 million of
expenses reflected under cost of sales, $1.3 million of expenses
reflected under selling, general and administrative expenses, and
$2.7 million of net gains reflected under other (income) expense,
net in the Consolidated Statements of Operations. Impact of other
adjustments, net for All Other is reflected under selling, general
and administrative expenses in the Consolidated Statements of
Operations.
|
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SOURCE Cott Corporation