(Unless stated otherwise, all third quarter 2019
comparisons are relative to the third quarter of 2018; all
information is in U.S. dollars.)
TORONTO and
TAMPA, FL, Nov. 7, 2019 /CNW/ - Cott Corporation (NYSE:COT;
TSX:BCB), a leading provider of home and office bottled water
delivery services in North America
and Europe and a leader in custom
coffee roasting for the U.S. food service industry, today announced
its results for the third quarter ended September 28, 2019.
"We are pleased with our top and bottom line
performance during the quarter," commented
Tom Harrington, Cott's Chief
Executive Officer. "Both our Route Based
Services and our Coffee, Tea and Extract Solutions segments
delivered strong revenue and EBITDA growth during the
quarter. We remain confident in our full year outlook
for 2019, as well as our ability to deliver long-term shareholder
value," continued Mr. Harrington.
THIRD QUARTER 2019 GLOBAL PERFORMANCE
- Revenue increased 1% to $616
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 Q3
Revenue
|
|
|
|
$
609.3
|
|
|
Divested Cott
Beverages LLC business
|
|
-20.7
|
|
|
2018 Q3 adjusted revenue
|
|
|
|
$
588.6
|
|
|
|
|
|
|
|
|
|
Route Based
Services
|
|
|
|
+26.4
|
|
|
Coffee, Tea and
Extract Solutions
|
|
|
|
+9.8
|
|
|
Change before adjustments
|
|
|
|
+36.2
|
|
6.2%
|
Foreign exchange
(a)
|
|
|
|
-4.1
|
|
|
Change in average
green coffee commodity pass-through costs
|
|
-4.6
|
|
|
|
|
|
|
|
|
|
2019 Q3 Revenue
|
|
|
|
$
616.1
|
|
|
|
|
|
|
|
|
|
(a) See Exhibit 5 for details by
reporting segment
|
|
|
|
|
|
|
- Gross profit increased 5% to $326
million (6% excluding the divested Cott Beverages LLC
business). Gross margin as a percentage of revenue increased 190
basis points to 52.9% compared to 51.0%. Excluding Cott Beverages
LLC, gross margin as a percentage of revenue increased 70 basis
points to 52.9% compared to 52.2% driven primarily by improved
operating leverage within our operations, offset in part by foreign
exchange.
- Income tax expense was $9
million compared to $1 million
due primarily to increased income incurred in taxable
jurisdictions. Cash taxes paid during the quarter were $1 million.
- Reported net income and net income per diluted share were
flat at $9 million and $0.06, respectively, as the growth in operating
income was offset by increased tax accruals. Adjusted EBITDA was
$96 million compared to $92 million driven by growth in
revenue and the resulting operational leverage, offset in
part by foreign exchange and increased year-over-year
incentive accruals in the quarter.
- Net cash provided by operating activities of $82 million, less $36
million of capital expenditures, resulted in $46 million of free cash flow, or $50 million of adjusted free cash flow (adjusting
for the items set forth on Exhibit 7), compared to adjusted free
cash flow of $56 million in the prior
year due in part to other cash inflows in the prior
year.
THIRD QUARTER 2019 REPORTING SEGMENT
PERFORMANCE
Route Based Services
- Revenue increased 5% (6% excluding the impact of foreign
exchange) to $472 million due to
organic growth in Home & Office Delivery ("HOD Water") bottled
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 Q3
Revenue
|
|
|
|
$ 449.8
|
|
|
HOD Water
related
|
|
|
|
+18.2
|
|
|
Customer
Growth/Volume
|
|
+9.7
|
|
|
|
|
Price/Mix
|
|
+5.2
|
|
|
|
|
Mountain Valley HOD
Water
|
|
+3.3
|
|
|
|
|
Other
|
|
|
|
+8.2
|
|
|
Change excluding foreign exchange
impact
|
|
|
|
+26.4
|
|
5.9%
|
Foreign exchange
impact
|
|
|
|
-4.1
|
|
|
2019 Q3 Revenue
|
|
|
|
$
472.1
|
|
5.0%
|
- Gross profit increased 5% to $286
million, driven primarily by revenue growth. Gross profit as
a percentage of revenue was up 20 basis points at 60.6%.
- SG&A expenses as a percentage of revenue decreased 80
basis points to 50.2% (see Exhibit 4). SG&A
expenses increased to $237 million
compared to $230 million due
primarily to the addition of Mountain Valley as well as higher
year-over-year incentive accruals in the quarter, offset in part by
a foreign exchange benefit and lower amortization expense.
- Operating income increased 20% to $46 million compared to $39 million, while adjusted EBITDA increased 4%
to $92 million compared to
$89 million, as revenue growth and
the corresponding operational leverage was offset in
part by foreign exchange and higher year-over-year
incentive accruals in the quarter.
Coffee, Tea and Extract Solutions
- Revenue increased 4% (7% adjusting for the change in
average cost of coffee) to $145
million driven primarily by 4% growth in coffee pounds sold
and 19% volume growth in liquid coffee and extracts. A detailed
breakdown is tabulated below.
Coffee, Tea and Extract
Solutions
|
|
|
Revenue Bridge
|
|
∆%
|
2018 Q3
Revenue
|
|
|
|
$ 140.2
|
|
|
Coffee
volume
|
|
|
|
+2.9
|
|
|
Coffee
price/mix
|
|
|
|
+2.8
|
|
|
Liquid coffee and
extracts
|
|
|
|
+3.7
|
|
|
Other
|
|
|
|
+0.4
|
|
|
Change excluding change in average green
coffee commodity pass-through costs
|
|
|
|
+9.8
|
|
7.0%
|
Change in average
green coffee commodity
pass-through costs
|
|
|
|
-4.6
|
|
|
2019 Q3 Revenue
|
|
|
|
$
145.4
|
|
3.7%
|
- Gross profit was $40
million compared to $35
million and gross margin as a percentage of revenue
increased to 27.4% compared to 25.2% driven primarily by leveraging
the volume growth generated during the quarter.
- SG&A expenses were $37
million compared to $33
million driven primarily by higher selling and operating
costs which supported the volume and revenue growth of the business
segment.
- Operating income was $3
million compared to $5 million
while adjusted EBITDA was up 17% at $10
million, driven by growth in revenue and the
resulting operational leverage, offset in part by the
higher selling and operating costs associated with driving volume
growth.
2019 FULL YEAR REVENUE AND ADJUSTED FREE CASH FLOW
Cott continues to expect full year 2019 consolidated
revenue of $2.4 billion and adjusted
free cash flow of more than $150
million (when excluding acquisition, integration and other
one-time cash costs).
THIRD QUARTER 2019 RESULTS CONFERENCE
CALL
Cott Corporation will host a conference call today,
November 7, 2019, 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: 6899766
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 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),
potential uses for cash 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 due to 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
exchange between 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 Nine Months Ended
|
|
September 28,
2019
|
|
|
September 29,
2018
|
|
September 28,
2019
|
|
September 29,
2018
|
|
|
|
|
|
|
|
|
Revenue, net
|
$
|
616.1
|
|
|
$
|
609.3
|
|
$
|
1,794.3
|
|
$
|
1,773.7
|
Cost of
sales
|
289.9
|
|
|
298.8
|
|
872.1
|
|
888.3
|
Gross profit
|
326.2
|
|
|
310.5
|
|
922.2
|
|
885.4
|
Selling, general and
administrative expenses
|
280.8
|
|
|
279.9
|
|
837.1
|
|
816.2
|
Loss on disposal of
property, plant and equipment, net
|
1.1
|
|
|
1.2
|
|
4.6
|
|
3.8
|
Acquisition and
integration expenses
|
2.7
|
|
|
1.6
|
|
10.2
|
|
10.8
|
Operating income
|
41.6
|
|
|
27.8
|
|
70.3
|
|
54.6
|
Other expense
(income), net
|
3.8
|
|
|
(0.6)
|
|
6.9
|
|
(33.0)
|
Interest expense,
net
|
20.2
|
|
|
18.9
|
|
58.6
|
|
58.3
|
Income from continuing operations before income
taxes
|
17.6
|
|
|
9.5
|
|
4.8
|
|
29.3
|
Income tax
expense
|
9.0
|
|
|
1.0
|
|
11.5
|
|
4.0
|
Net income (loss) from continuing
operations
|
$
|
8.6
|
|
|
$
|
8.5
|
|
$
|
(6.7)
|
|
$
|
25.3
|
Net income from
discontinued operations, net of income taxes
|
1.5
|
|
|
1.5
|
|
1.5
|
|
357.5
|
Net income (loss)
|
$
|
10.1
|
|
|
$
|
10.0
|
|
$
|
(5.2)
|
|
$
|
382.8
|
Less: Net income
attributable to non-controlling interests - discontinued
operations
|
—
|
|
|
—
|
|
—
|
|
0.6
|
Net income (loss) attributable to Cott
Corporation
|
$
|
10.1
|
|
|
$
|
10.0
|
|
$
|
(5.2)
|
|
$
|
382.2
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share attributable to
Cott Corporation
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.06
|
|
|
$
|
0.06
|
|
$
|
(0.05)
|
|
$
|
0.18
|
Discontinued
operations
|
$
|
0.01
|
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
2.56
|
Net income
(loss)
|
$
|
0.07
|
|
|
$
|
0.07
|
|
$
|
(0.04)
|
|
$
|
2.74
|
Diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.06
|
|
|
$
|
0.06
|
|
$
|
(0.05)
|
|
$
|
0.18
|
Discontinued
operations
|
$
|
0.01
|
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
2.51
|
Net income
(loss)
|
$
|
0.07
|
|
|
$
|
0.07
|
|
$
|
(0.04)
|
|
$
|
2.69
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in
thousands)
|
|
|
|
|
|
|
|
|
Basic
|
134,667
|
|
|
138,787
|
|
135,395
|
|
139,503
|
Diluted
|
136,208
|
|
|
141,176
|
|
135,395
|
|
141,963
|
COTT CORPORATION
|
|
|
EXHIBIT 2
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
(in millions of U.S. dollars, except share amounts,
U.S. GAAP)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
September 28, 2019
|
|
December 29, 2018
|
ASSETS
|
|
|
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
$
|
143.6
|
|
$
|
170.8
|
Accounts receivable,
net of allowance of $8.6 ($9.6 as of December 29, 2018)
|
312.6
|
|
308.3
|
Inventories
|
126.2
|
|
129.6
|
Prepaid expenses and
other current assets
|
29.1
|
|
27.2
|
Total current assets
|
611.5
|
|
635.9
|
Property, plant and
equipment, net
|
640.9
|
|
624.7
|
Operating lease
right-of-use-assets
|
198.6
|
|
—
|
Goodwill
|
1,152.2
|
|
1,143.9
|
Intangible assets,
net
|
696.4
|
|
739.2
|
Deferred tax
assets
|
0.1
|
|
0.1
|
Other long-term
assets, net
|
21.1
|
|
31.7
|
Total assets
|
$
|
3,320.8
|
|
$
|
3,175.5
|
LIABILITIES AND EQUITY
|
|
|
|
Current liabilities
|
|
|
|
Short-term
borrowings
|
96.3
|
|
89.0
|
Current maturities of
long-term debt
|
5.1
|
|
3.0
|
Accounts payable and
accrued liabilities
|
445.6
|
|
469.0
|
Current operating
lease obligations
|
37.7
|
|
—
|
Total current liabilities
|
584.7
|
|
561.0
|
Long-term
debt
|
1,243.0
|
|
1,250.2
|
Operating lease
obligations
|
166.2
|
|
—
|
Deferred tax
liabilities
|
126.4
|
|
124.3
|
Other long-term
liabilities
|
58.6
|
|
69.6
|
Total liabilities
|
2,178.9
|
|
2,005.1
|
Equity
|
|
|
|
Common shares, no par
value - 134,670,538 (December 29, 2018 - 136,195,108) shares
issued
|
890.5
|
|
899.4
|
Additional
paid-in-capital
|
75.8
|
|
73.9
|
Retained
earnings
|
265.0
|
|
298.8
|
Accumulated other
comprehensive loss
|
(89.4)
|
|
(101.7)
|
Total Cott Corporation equity
|
1,141.9
|
|
1,170.4
|
Total liabilities and equity
|
$
|
3,320.8
|
|
$
|
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 Nine Months Ended
|
|
September
28, 2019
|
|
September
29, 2018
|
|
September
28, 2019
|
|
September
29, 2018
|
|
|
|
|
|
|
|
|
Cash flows from operating activities of continuing
operations:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
10.1
|
|
$
|
10.0
|
|
$
|
(5.2)
|
|
$
|
382.8
|
Net income from
discontinued operations, net of income taxes
|
1.5
|
|
1.5
|
|
1.5
|
|
357.5
|
Net income (loss)
from continuing operations
|
$
|
8.6
|
|
$
|
8.5
|
|
$
|
(6.7)
|
|
$
|
25.3
|
Adjustments to reconcile net income (loss) from
continuing operations to cash flows from operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
48.0
|
|
49.6
|
|
142.1
|
|
145.7
|
Amortization of
financing fees
|
0.9
|
|
0.9
|
|
2.6
|
|
2.6
|
Share-based
compensation expense
|
1.7
|
|
6.8
|
|
8.5
|
|
14.6
|
Provision for
deferred income taxes
|
6.0
|
|
0.1
|
|
0.8
|
|
2.8
|
Loss (gain) on sale
of business
|
—
|
|
—
|
|
6.0
|
|
(6.0)
|
Gain on
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
(7.1)
|
Loss on disposal of
property, plant and equipment, net
|
1.1
|
|
1.2
|
|
4.6
|
|
3.8
|
Other non-cash
items
|
3.5
|
|
0.8
|
|
0.2
|
|
(1.4)
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(6.4)
|
|
(21.8)
|
|
(21.0)
|
|
(41.0)
|
Inventories
|
3.9
|
|
4.3
|
|
(12.2)
|
|
(9.4)
|
Prepaid expenses and
other current assets
|
(0.8)
|
|
(0.8)
|
|
(2.1)
|
|
(7.4)
|
Other
assets
|
0.2
|
|
0.2
|
|
1.5
|
|
1.4
|
Accounts payable and
accrued liabilities and other liabilities
|
15.4
|
|
28.4
|
|
(7.1)
|
|
22.2
|
Net cash provided by
operating activities from continuing operations
|
82.1
|
|
78.2
|
|
117.2
|
|
146.1
|
Cash flows from investing activities of continuing
operations:
|
|
|
|
|
|
|
|
Acquisitions, net of
cash received
|
(5.2)
|
|
(0.4)
|
|
(47.7)
|
|
(67.0)
|
Additions to
property, plant and equipment
|
(35.9)
|
|
(36.3)
|
|
(87.5)
|
|
(95.0)
|
Additions to
intangible assets
|
(3.3)
|
|
(2.7)
|
|
(7.6)
|
|
(6.9)
|
Proceeds from sale of
property, plant and equipment
|
0.5
|
|
0.8
|
|
2.9
|
|
3.7
|
Proceeds from sale of
business, net of cash sold
|
—
|
|
—
|
|
50.5
|
|
12.8
|
Proceeds from sale of
equity securities
|
—
|
|
7.9
|
|
—
|
|
7.9
|
Other investing
activities
|
0.5
|
|
0.1
|
|
0.6
|
|
0.4
|
Net cash used in
investing activities from continuing operations
|
(43.4)
|
|
(30.6)
|
|
(88.8)
|
|
(144.1)
|
Cash flows from financing activities of continuing
operations:
|
|
|
|
|
|
|
|
Payments of long-term
debt
|
(1.5)
|
|
(0.2)
|
|
(4.5)
|
|
(263.5)
|
Borrowings under
ABL
|
1.2
|
|
0.4
|
|
64.1
|
|
1.4
|
Payments under
ABL
|
(1.2)
|
|
(0.4)
|
|
(63.1)
|
|
(1.4)
|
Premiums and costs
paid upon extinguishment of long-term debt
|
—
|
|
—
|
|
—
|
|
(12.5)
|
Issuance of common
shares
|
0.2
|
|
1.8
|
|
0.9
|
|
6.0
|
Common shares
repurchased and canceled
|
(0.1)
|
|
(24.4)
|
|
(31.1)
|
|
(46.1)
|
Financing
fees
|
—
|
|
—
|
|
—
|
|
(1.5)
|
Dividends paid to
common shareholders
|
(8.2)
|
|
(8.3)
|
|
(24.4)
|
|
(25.1)
|
Payment of deferred
consideration for acquisitions
|
—
|
|
—
|
|
(0.2)
|
|
(2.8)
|
Other financing
activities
|
2.0
|
|
1.9
|
|
5.4
|
|
4.0
|
Net cash used in
financing activities from continuing operations
|
(7.6)
|
|
(29.2)
|
|
(52.9)
|
|
(341.5)
|
Cash flows from discontinued
operations:
|
|
|
|
|
|
|
|
Operating activities
of discontinued operations
|
—
|
|
(5.6)
|
|
(3.2)
|
|
(93.6)
|
Investing activities
of discontinued operations
|
—
|
|
—
|
|
—
|
|
1,228.6
|
Financing activities
of discontinued operations
|
—
|
|
—
|
|
—
|
|
(769.7)
|
Net cash (used in)
provided by discontinued operations
|
—
|
|
(5.6)
|
|
(3.2)
|
|
365.3
|
Effect of exchange
rate changes on cash
|
(0.9)
|
|
0.5
|
|
0.5
|
|
(8.0)
|
Net increase (decrease) in cash, cash equivalents and
restricted cash
|
30.2
|
|
13.3
|
|
(27.2)
|
|
17.8
|
Cash and cash equivalents and restricted cash,
beginning of period
|
113.4
|
|
162.4
|
|
170.8
|
|
157.9
|
Cash and cash equivalents and restricted cash from
continuing operations, end of period
|
$
|
143.6
|
|
$
|
175.7
|
|
$
|
143.6
|
|
$
|
175.7
|
COTT CORPORATION
|
|
|
|
|
|
|
|
|
|
EXHIBIT 4
|
SEGMENT INFORMATION
|
|
|
|
|
|
|
|
|
|
|
(in millions of U.S. dollars, U.S.
GAAP)
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 28,
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
|
|
$
|
309.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
309.3
|
|
Coffee and tea
services
|
|
43.0
|
|
|
114.8
|
|
|
—
|
|
|
(1.4)
|
|
|
156.4
|
|
Retail
|
|
77.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.9
|
|
Other
|
|
41.9
|
|
|
30.6
|
|
|
—
|
|
|
—
|
|
|
72.5
|
|
Total
|
|
$
|
472.1
|
|
|
$
|
145.4
|
|
|
$
|
—
|
|
|
$
|
(1.4)
|
|
|
$
|
616.1
|
|
Gross Profit
|
|
$
|
286.3
|
|
|
$
|
39.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
326.2
|
|
Gross Margin %
|
|
60.6
|
%
|
|
27.4
|
%
|
|
—
|
%
|
|
—
|
|
|
52.9
|
%
|
Selling, general and administrative
expenses
|
|
$
|
237.0
|
|
|
$
|
36.6
|
|
|
$
|
7.2
|
|
|
$
|
—
|
|
|
$
|
280.8
|
|
SG&A% of revenue
|
|
50.2
|
%
|
|
25.2
|
%
|
|
N/A
|
|
N/A
|
|
45.6
|
%
|
Operating income (loss)
|
|
$
|
46.4
|
|
|
$
|
3.2
|
|
|
$
|
(8.0)
|
|
|
$
|
—
|
|
|
$
|
41.6
|
|
Depreciation and Amortization
|
|
$
|
41.6
|
|
|
$
|
6.3
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
48.0
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 29,
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)
|
|
$
|
293.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
293.4
|
|
Coffee and tea
services
|
|
46.3
|
|
|
113.0
|
|
|
—
|
|
|
(1.4)
|
|
|
157.9
|
|
Retail (a)
|
|
73.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73.8
|
|
Other (a)
|
|
36.3
|
|
|
27.2
|
|
|
20.7
|
|
|
—
|
|
|
84.2
|
|
Total
|
|
$
|
449.8
|
|
|
$
|
140.2
|
|
|
$
|
20.7
|
|
|
$
|
(1.4)
|
|
|
$
|
609.3
|
|
Gross Profit
|
|
$
|
271.9
|
|
|
$
|
35.4
|
|
|
$
|
3.2
|
|
|
$
|
—
|
|
|
$
|
310.5
|
|
Gross Margin %
|
|
60.4
|
%
|
|
25.2
|
%
|
|
15.5
|
%
|
|
—
|
|
|
51.0
|
%
|
Selling, general and administrative
expenses
|
|
$
|
229.5
|
|
|
$
|
33.0
|
|
|
$
|
17.4
|
|
|
$
|
—
|
|
|
$
|
279.9
|
|
SG&A% of revenue
|
|
51.0
|
%
|
|
23.5
|
%
|
|
N/A
|
|
N/A
|
|
45.9
|
%
|
Operating income (loss)
|
|
$
|
38.8
|
|
|
$
|
5.0
|
|
|
$
|
(16.0)
|
|
|
$
|
—
|
|
|
$
|
27.8
|
|
Depreciation and Amortization
|
|
$
|
43.5
|
|
|
$
|
5.8
|
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
49.6
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 28,
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
|
|
$
|
858.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
858.5
|
|
Coffee and tea
services
|
|
138.5
|
|
|
355.6
|
|
|
—
|
|
|
(4.5)
|
|
|
489.6
|
|
Retail
|
|
224.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
224.6
|
|
Other
|
|
126.6
|
|
|
87.8
|
|
|
7.2
|
|
|
—
|
|
|
221.6
|
|
Total
|
|
$
|
1,348.2
|
|
|
$
|
443.4
|
|
|
$
|
7.2
|
|
|
$
|
(4.5)
|
|
|
$
|
1,794.3
|
|
Gross Profit
|
|
$
|
800.7
|
|
|
$
|
121.2
|
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
922.2
|
|
Gross Margin %
|
|
59.4
|
%
|
|
27.3
|
%
|
|
4.2
|
%
|
|
—
|
|
|
51.4
|
%
|
Selling, general and administrative
expenses
|
|
$
|
699.1
|
|
|
$
|
111.4
|
|
|
$
|
26.6
|
|
|
$
|
—
|
|
|
$
|
837.1
|
|
SG&A% of revenue
|
|
51.9
|
%
|
|
25.1
|
%
|
|
N/A
|
|
N/A
|
|
46.7
|
%
|
Operating income (loss)
|
|
$
|
89.8
|
|
|
$
|
9.7
|
|
|
$
|
(29.2)
|
|
|
$
|
—
|
|
|
$
|
70.3
|
|
Depreciation and Amortization
|
|
$
|
124.1
|
|
|
$
|
17.8
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
142.1
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 29,
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)
|
|
$
|
817.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
817.7
|
|
Coffee and tea
services
|
|
142.3
|
|
|
349.0
|
|
|
—
|
|
|
(3.9)
|
|
|
487.4
|
|
Retail (a)
|
|
214.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
214.4
|
|
Other (a)
|
|
111.2
|
|
|
82.8
|
|
|
60.3
|
|
|
(0.1)
|
|
|
254.2
|
|
Total
|
|
$
|
1,285.6
|
|
|
$
|
431.8
|
|
|
$
|
60.3
|
|
|
$
|
(4.0)
|
|
|
$
|
1,773.7
|
|
Gross Profit (b)
|
|
$
|
765.6
|
|
|
$
|
111.5
|
|
|
$
|
8.3
|
|
|
$
|
—
|
|
|
$
|
885.4
|
|
Gross Margin %
|
|
59.6
|
%
|
|
25.8
|
%
|
|
13.8
|
%
|
|
—
|
|
|
49.9
|
%
|
Selling, general and administrative
expenses
|
|
$
|
673.2
|
|
|
$
|
101.2
|
|
|
$
|
41.8
|
|
|
$
|
—
|
|
|
$
|
816.2
|
|
SG&A% of revenue
|
|
52.4
|
%
|
|
23.4
|
%
|
|
N/A
|
|
N/A
|
|
46.0
|
%
|
Operating income (loss)
|
|
$
|
80.9
|
|
|
$
|
12.3
|
|
|
$
|
(38.6)
|
|
|
$
|
—
|
|
|
$
|
54.6
|
|
Depreciation and Amortization
|
|
$
|
127.8
|
|
|
$
|
17.2
|
|
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
145.7
|
|
|
(a) Revenues by
channel of our Route Based Services reporting segment for the three
and nine months ended September 29, 2018 had $22.3 million and
$58.2 million of revenue, respectively, reclassified from "other"
to "home and office bottled water delivery" as these activities are
associated with the "home and office bottled water delivery"
channel. In addition, for the three and nine months ended September
29, 2018, we reclassified $4.1 million and $11.5 million of
revenue, 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 September 28,
2019
|
|
Route Based
Services
|
|
Coffee, Tea and
Extract Solutions
|
|
All Other
|
|
Eliminations
|
|
Cott (a)
|
Change in
revenue
|
$
|
22.3
|
|
|
$
|
5.2
|
|
|
$
|
(20.7)
|
|
|
$
|
—
|
|
|
$
|
6.8
|
|
Impact of foreign
exchange (b)
|
$
|
4.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.1
|
|
Change excluding
foreign exchange
|
$
|
26.4
|
|
|
$
|
5.2
|
|
|
$
|
(20.7)
|
|
|
$
|
—
|
|
|
$
|
10.9
|
|
Percentage change in
revenue
|
5.0
|
%
|
|
3.7
|
%
|
|
(100.0)
|
%
|
|
—
|
%
|
|
1.1
|
%
|
Percentage change in
revenue excluding foreign exchange
|
5.9
|
%
|
|
3.7
|
%
|
|
(100.0)
|
%
|
|
—
|
%
|
|
1.8
|
%
|
|
|
(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 Nine Months Ended
|
|
September
28, 2019
|
|
|
September
29, 2018
|
|
September
28, 2019
|
|
|
September
29, 2018
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing
operations
|
$
|
8.6
|
|
|
$
|
8.5
|
|
$
|
(6.7)
|
|
|
$
|
25.3
|
Interest expense,
net
|
20.2
|
|
|
18.9
|
|
58.6
|
|
|
58.3
|
Income tax
expense
|
9.0
|
|
|
1.0
|
|
11.5
|
|
|
4.0
|
Depreciation and
amortization
|
48.0
|
|
|
49.6
|
|
142.1
|
|
|
145.7
|
EBITDA
|
$
|
85.8
|
|
|
$
|
78.0
|
|
$
|
205.5
|
|
|
$
|
233.3
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs (a), (c)
|
2.7
|
|
|
1.6
|
|
10.2
|
|
|
10.8
|
Share-based
compensation costs (d)
|
2.1
|
|
|
10.2
|
|
8.5
|
|
|
16.2
|
Commodity hedging
loss, net (e)
|
—
|
|
|
—
|
|
—
|
|
|
0.3
|
Foreign exchange and
other losses (gains), net (f)
|
4.3
|
|
|
0.4
|
|
4.6
|
|
|
(10.8)
|
Loss on disposal of
property, plant and equipment, net (g)
|
1.1
|
|
|
1.2
|
|
4.6
|
|
|
3.8
|
Gain on
extinguishment of long-term debt (h)
|
—
|
|
|
—
|
|
—
|
|
|
(7.1)
|
Loss (gain) on sale
of business (i)
|
—
|
|
|
—
|
|
6.0
|
|
|
(6.0)
|
Cott Beverages LLC
(b), (j)
|
—
|
|
|
(1.2)
|
|
0.4
|
|
|
(3.1)
|
Other adjustments,
net (k)
|
0.4
|
|
|
1.4
|
|
3.5
|
|
|
(0.4)
|
Adjusted EBITDA
|
$
|
96.4
|
|
|
$
|
91.6
|
|
$
|
243.3
|
|
|
$
|
237.0
|
|
(a) Includes a
reduction of $0.4 million for the three months ended September 28,
2019, and a reduction of $3.4 million and $1.6 million for the
three and nine months ended September 29, 2018, respectively, of
share-based compensation costs 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 Nine Months Ended
|
|
Location in Consolidated Statements of
Operations
|
|
September 28,
2019
|
|
September 29,
2018
|
|
September 28,
2019
|
|
September 29,
2018
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(c) Acquisition and
integration costs
|
Acquisition and
integration expenses
|
|
$
|
2.7
|
|
$
|
1.6
|
|
$
|
10.2
|
|
$
|
10.8
|
(d) Share-based
compensation costs
|
Selling, general and
administrative expenses
|
|
2.1
|
|
10.2
|
|
8.5
|
|
16.2
|
(e) Commodity hedging
loss, net
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
0.3
|
(f) Foreign exchange
and other losses (gains), net
|
Other expense
(income), net
|
|
4.3
|
|
0.4
|
|
4.6
|
|
(10.8)
|
(g) Loss on disposal
of property, plant and equipment, net
|
Loss on disposal of
property, plant and equipment, net
|
|
1.1
|
|
1.2
|
|
4.6
|
|
3.8
|
(h) Gain on
extinguishment of long-term debt
|
Other expense
(income), net
|
|
—
|
|
—
|
|
—
|
|
(7.1)
|
(i) Loss (gain) on
sale of business
|
Other expense
(income), net
|
|
—
|
|
—
|
|
6.0
|
|
(6.0)
|
(j) Cott Beverages
LLC
|
Revenue,
net
|
|
—
|
|
(20.7)
|
|
(7.2)
|
|
(60.3)
|
|
Cost of
sales
|
|
—
|
|
17.4
|
|
6.8
|
|
51.6
|
|
Selling, general and
administrative expenses
|
|
—
|
|
2.8
|
|
1.1
|
|
7.7
|
|
Other expense
(income), net
|
|
—
|
|
(0.7)
|
|
(0.3)
|
|
(2.1)
|
(k) Other
adjustments, net
|
Other expense
(income), net
|
|
(0.5)
|
|
—
|
|
(2.5)
|
|
(6.6)
|
|
Selling, general and
administrative expenses
|
|
0.8
|
|
1.3
|
|
5.9
|
|
4.9
|
|
Cost of
sales
|
|
0.1
|
|
0.1
|
|
0.1
|
|
1.3
|
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
|
|
September 28, 2019
|
|
September 29, 2018
|
|
|
|
|
Net cash provided by operating activities from
continuing operations
|
$
|
82.1
|
|
|
$
|
78.2
|
|
Less: Additions
to property, plant, and equipment
|
(35.9)
|
|
|
(36.3)
|
|
Free Cash Flow
|
$
|
46.2
|
|
|
$
|
41.9
|
|
|
|
|
|
Plus:
|
|
|
|
Acquisition and
integration cash costs
|
3.4
|
|
|
3.1
|
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
—
|
|
|
2.6
|
|
Additional cash
proceeds from Primo operating agreement (b)
|
—
|
|
|
7.9
|
|
Adjusted Free Cash Flow
|
$
|
49.6
|
|
|
$
|
55.5
|
|
|
For the Nine Months Ended
|
|
September 28, 2019
|
|
September 29, 2018
|
|
|
|
|
Net cash provided by operating activities from
continuing operations
|
$
|
117.2
|
|
|
$
|
146.1
|
|
Less: Additions
to property, plant, and equipment
|
(87.5)
|
|
|
(95.0)
|
|
Free Cash Flow
|
$
|
29.7
|
|
|
$
|
51.1
|
|
|
|
|
|
Plus:
|
|
|
|
Acquisition and
integration cash costs
|
12.0
|
|
|
12.5
|
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
—
|
|
|
13.7
|
|
Additional cash
proceeds from Primo operating agreement (b)
|
—
|
|
|
7.9
|
|
Adjusted Free Cash Flow
|
$
|
41.7
|
|
|
$
|
85.2
|
|
|
|
|
|
(a) Increase in
working capital related to the Concentrate Supply Agreement with
Refresco in connection with the Transaction.
|
(b) The Company
received warrants in connection with our 2014 operating agreement
with Primo Water Corporation.
|
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
|
|
September 28,
2019
|
|
September 29,
2018
|
|
September 28,
2019
|
|
September 29,
2018
|
|
September 28,
2019
|
|
September 29,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net
|
$
|
616.1
|
|
|
$
|
609.3
|
|
|
$
|
472.1
|
|
|
$
|
449.8
|
|
|
$
|
145.4
|
|
|
$
|
140.2
|
|
Divested Cott
Beverages LLC business
|
$
|
—
|
|
|
$
|
(20.7)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Adjusted Revenue
|
$
|
616.1
|
|
|
$
|
588.6
|
|
|
$
|
472.1
|
|
|
$
|
449.8
|
|
|
$
|
145.4
|
|
|
$
|
140.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in adjusted
revenue
|
$
|
27.5
|
|
|
|
|
$
|
22.3
|
|
|
|
|
$
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change in adjusted
revenue
|
4.7
|
%
|
|
|
|
5.0
|
%
|
|
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of foreign
exchange (b)
|
$
|
4.1
|
|
|
|
|
$
|
4.1
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of change in
average cost of green coffee (c)
|
$
|
4.6
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in adjusted
revenue excluding foreign exchange
and impact of change in average cost of green coffee
|
$
|
36.2
|
|
|
|
|
$
|
26.4
|
|
|
|
|
$
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change in adjusted revenue excluding
foreign exchange and impact of change in average cost
of green coffee
|
6.2
|
%
|
|
|
|
5.9
|
%
|
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
September 28, 2019
|
|
Cott Consolidated
|
|
Divested Business (a)
|
|
Cott Adjusted
|
|
|
|
|
|
|
Revenue, net
|
$
|
616.1
|
|
|
$
|
—
|
|
|
$
|
616.1
|
|
Cost of
sales
|
289.9
|
|
|
—
|
|
|
289.9
|
|
Gross profit
|
326.2
|
|
|
—
|
|
|
326.2
|
|
Gross margin %
|
52.9
|
%
|
|
|
|
52.9
|
%
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
280.8
|
|
|
—
|
|
|
280.8
|
|
SG&A% of revenue
|
45.6
|
%
|
|
|
|
45.6
|
%
|
|
|
|
|
|
|
Loss on disposal of
property, plant and equipment, net
|
1.1
|
|
|
—
|
|
|
1.1
|
|
Acquisition and
integration expenses
|
2.7
|
|
|
—
|
|
|
2.7
|
|
Operating income
|
41.6
|
|
|
—
|
|
|
41.6
|
|
|
|
|
|
|
|
Other expense,
net
|
3.8
|
|
|
—
|
|
|
3.8
|
|
Depreciation and
Amortization
|
48.0
|
|
|
—
|
|
|
48.0
|
|
EBITDA
|
85.8
|
|
|
—
|
|
|
85.8
|
|
|
|
|
|
|
|
Adjustments
|
10.6
|
|
|
—
|
|
|
10.6
|
|
Adjusted EBITDA
|
$
|
96.4
|
|
|
$
|
—
|
|
|
$
|
96.4
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
September 29, 2018
|
|
Cott Consolidated
|
|
Divested Business (a)
|
|
Cott Adjusted
|
|
|
|
|
|
|
Revenue, net
|
$
|
609.3
|
|
|
$
|
20.7
|
|
|
$
|
588.6
|
|
Cost of
sales
|
298.8
|
|
|
17.5
|
|
|
281.3
|
|
Gross profit
|
310.5
|
|
|
3.2
|
|
|
307.3
|
|
Gross margin %
|
51.0
|
%
|
|
|
|
52.2
|
%
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
279.9
|
|
|
2.9
|
|
|
277.0
|
|
SG&A% of revenue
|
45.9
|
%
|
|
|
|
47.1
|
%
|
|
|
|
|
|
|
Loss on disposal of
property, plant and equipment, net
|
1.2
|
|
|
—
|
|
|
1.2
|
|
Acquisition and
integration expenses
|
1.6
|
|
|
—
|
|
|
1.6
|
|
Operating income
|
27.8
|
|
|
0.3
|
|
|
27.5
|
|
|
|
|
|
|
|
Other income,
net
|
(0.6)
|
|
|
(0.6)
|
|
|
—
|
|
Depreciation and
Amortization
|
49.6
|
|
|
0.2
|
|
|
49.4
|
|
EBITDA
|
78.0
|
|
|
1.1
|
|
|
76.9
|
|
|
|
|
|
|
|
Adjustments
|
13.6
|
|
|
(1.1)
|
|
|
14.7
|
|
Adjusted EBITDA
|
$
|
91.6
|
|
|
$
|
—
|
|
|
$
|
91.6
|
|
|
|
|
|
|
|
(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 September 28,
2019
|
|
Route Based
Services
|
|
Coffee, Tea and
Extract Solutions
|
|
All Other
|
|
Total
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
46.4
|
|
|
$
|
3.2
|
|
|
$
|
(8.0)
|
|
|
$
|
41.6
|
|
Other expense
(income), net
|
4.2
|
|
|
—
|
|
|
(0.4)
|
|
|
3.8
|
|
Depreciation and
amortization
|
41.6
|
|
|
6.3
|
|
|
0.1
|
|
|
48.0
|
|
EBITDA (a)
|
$
|
83.8
|
|
|
$
|
9.5
|
|
|
$
|
(7.5)
|
|
|
$
|
85.8
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
1.8
|
|
|
0.1
|
|
|
0.8
|
|
|
2.7
|
|
Share-based
compensation costs
|
0.8
|
|
|
0.2
|
|
|
1.1
|
|
|
2.1
|
|
Foreign exchange and
other losses (gains), net
|
4.5
|
|
|
—
|
|
|
(0.2)
|
|
|
4.3
|
|
Loss on disposal of
property, plant and equipment, net
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
Other adjustments,
net (b)
|
0.3
|
|
|
—
|
|
|
0.1
|
|
|
0.4
|
|
Adjusted EBITDA
|
$
|
92.3
|
|
|
$
|
9.8
|
|
|
$
|
(5.7)
|
|
|
$
|
96.4
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 29,
2018
|
|
Route Based
Services
|
|
Coffee, Tea and
Extract Solutions
|
|
All Other
|
|
Total
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
38.8
|
|
|
$
|
5.0
|
|
|
$
|
(16.0)
|
|
|
$
|
27.8
|
|
Other (income)
expense, net
|
(0.6)
|
|
|
(0.3)
|
|
|
0.3
|
|
|
(0.6)
|
|
Depreciation and
amortization
|
43.5
|
|
|
5.8
|
|
|
0.3
|
|
|
49.6
|
|
EBITDA (a)
|
$
|
82.9
|
|
|
$
|
11.1
|
|
|
$
|
(16.0)
|
|
|
$
|
78.0
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
2.4
|
|
|
(2.6)
|
|
|
1.8
|
|
|
1.6
|
|
Share-based
compensation costs
|
1.1
|
|
|
0.1
|
|
|
9.0
|
|
|
10.2
|
|
Foreign exchange and
other (gains) losses, net
|
(0.4)
|
|
|
—
|
|
|
0.8
|
|
|
0.4
|
|
Loss (gain) on
disposal of property, plant and equipment, net
|
1.4
|
|
|
(0.2)
|
|
|
—
|
|
|
1.2
|
|
Cott Beverages LLC
(c)
|
—
|
|
|
—
|
|
|
(1.2)
|
|
|
(1.2)
|
|
Other adjustments,
net (d)
|
1.1
|
|
|
—
|
|
|
0.3
|
|
|
1.4
|
|
Adjusted EBITDA
|
$
|
88.5
|
|
|
$
|
8.4
|
|
|
$
|
(5.3)
|
|
|
$
|
91.6
|
|
|
(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) Impact of other
adjustments, net for Route Based Services includes $0.7 million of
expenses reflected under selling, general and administrative
expenses, $0.1 million of expenses reflected under
cost of sales and $0.5 million of net gains reflected under other
(income) expense 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.
|
|
(c) Impact on our
operations related to the Cott Beverages LLC business, which was
sold on February 8, 2019.
|
|
(d) Impact of other
adjustments, net for Route Based Services includes $0.1 million of
expenses reflected under cost of sales and $1.0 million of expenses
reflected under selling, general and
administrative expenses 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