(Unless stated otherwise, all second quarter 2018 comparisons
are relative to the second quarter of 2017; all information is in
U.S. dollars.)
TORONTO and TAMPA, FL, Aug. 2,
2018 /CNW/ - Cott Corporation (NYSE: COT; TSX: BCB) today
announced its results for the second quarter ended June 30, 2018.
SECOND QUARTER 2018 HIGHLIGHTS – CONTINUING
OPERATIONS
- Revenue increased 4% (4% excluding the impact of foreign
exchange and adjusting for the change in average cost of coffee) to
$604 million compared to $581 million.
- Reiterated targeted full year 2018 consolidated revenue of over
$2.35 billion and full year 2018 cash
flow provided by operations of approximately $235 million with capital expenditures in the
range of $115 to $120 million, resulting in adjusted free cash
flow of $115 to $120 million (when excluding acquisition,
integration, tariffs and other working capital adjustments).
- Reported net income and net income per diluted share were
$12 million and $0.09, respectively, compared to reported net
loss and net loss per diluted share of $5
million and $0.03,
respectively. Adjusted EBITDA increased 2% to $83 million.
- Returned approximately $24
million to shareowners through $8
million in quarterly dividends and $16 million of share repurchases.
"I am especially pleased with the performance of our
Route Based Services segment during the quarter as we
continued to see top and bottom line growth even with
inflation in areas such as freight and other general SG&A
costs. To counter expected inflation, management will be
implementing pricing initiatives that are specifically designed to
offset these cost increases within our Route Based Services
segment," commented Jerry Fowden,
Cott's Chief Executive Officer. "With the significant
reductions in green coffee commodity costs, the revenues of our
Coffee, Tea and Extract Solutions segment were reduced as such
coffee price changes are passed through, up or down, as a part of
our service agreements. With that said, our Coffee, Tea and
Extract Solutions segment bottom line and cash flow continue to
track in line with our current year expectations as well as
our original acquisition model," continued Mr. Fowden.
SENIOR LEADERSHIP CHANGES
Cott today announced the following senior leadership changes
which are the culmination of the Board's thorough leadership
succession plan that capitalized on the strength of the Cott
Corporation management team:
- David Gibbons will retire from
his position as director and Chairman of the Company's Board of
Directors (the "Board"), effective as of the last day of fiscal
2018.
- Effective as of the beginning of fiscal 2019, Jerry Fowden will transition from his role as
Chief Executive Officer to the newly created position of Executive
Chairman of the Board.
- Thomas J. Harrington will be
promoted to serve as the Company's Chief Executive Officer and will
be appointed to serve on the Board, effective as of the beginning
of fiscal 2019.
Mr. Fowden commented, "On behalf of the Board, I want to thank
Dave for his leadership and tremendous service to Cott and his
contributions to the Board, which have created significant
long-term value for all of Cott's stakeholders. Under Dave's
leadership, we have successfully transitioned from a mature, low
margin, private label soft drink business with high big-box retail
customer concentration to a growth oriented, higher margin business
with much lower customer, product, and channel concentration."
Mr. Fowden continued, "After a thorough and thoughtful
succession planning process, Tom is the clear choice to lead Cott
into the future as CEO. He is an accomplished, results-oriented
leader, with significant industry knowledge and operational
experience. He brings the vision and qualities needed for Cott to
continue to execute on its strategic priorities. I fully expect
that Tom's transition to his new role as Chief Executive Officer
will be seamless and positive for the Company."
Commenting on his appointment to Chief Executive Officer, Mr.
Harrington said, "I welcome the opportunity and appreciate the
trust that Jerry and the Board have placed in me to continue to
build upon the success already achieved. I am excited about
continuing to work with Jerry and Cott's senior leadership team to
further build our leadership position as the preeminent
international route based direct to consumer water and coffee
solutions service provider."
Eric Rosenfeld, who will continue
to serve as the Lead Independent Director of the Board, commented,
"We are pleased to announce the appointment of Tom, a highly
capable leader, as CEO, while also leveraging Jerry's tremendous
experience in his new role as Executive Chairman of the
Board." Mr. Rosenfeld continued, "I would also like to thank
Dave for his 11 years of service to the Board and his leadership
during a transformative period for Cott."
Mr. Gibbons said: "It has been a tremendous privilege to lead
the Board over the past 11 years. I am proud of the achievements of
the Board and management during that time, specifically the recent
transformation of the Company into a growth-oriented water and
coffee service provider, which I believe positions the Company for
long-term success. Our Chief Executive Officer, Jerry Fowden, is the one who, with his team,
deserves credit. I am pleased that Jerry will succeed me in his new
role as Executive Chairman and will continue to work with Tom and
the rest of the Cott management group to build long-term
shareholder value."
SECOND QUARTER 2018 GLOBAL PERFORMANCE FROM CONTINUING
OPERATIONS
- Revenue increased 4% to $604
million (4% excluding the impact of foreign exchange and
adjusting for the change in average cost of coffee) as the
continued growth within the Route Based Services segment was offset
in part by the previously communicated reduction in revenues of the
Coffee, Tea and Extract Solutions segment which was driven by
passing through the reduced green coffee commodity cost as well as
the lapping of the outsized volume growth from the second quarter
of last year as we increased market share and on-boarded new
customers. Revenue drivers in the quarter are tabulated below:
Continuing
Operations
|
Revenue
Bridge
|
2017 Q2
Revenue
|
|
$
580.6
|
Route Based
Services
|
|
+22.3
|
Coffee, Tea and
Extract Solutions
|
|
-8.0
|
Foreign exchange
(a)
|
|
+5.9
|
Other
|
|
+2.8
|
2018 Q2
Revenue
|
|
$
603.6
|
|
|
|
(a) See
Exhibit 5 for details by reporting segment
|
|
|
- Gross profit increased 5% to $301
million, driven primarily by revenue growth, offset in part
by market inflation such as increases in previously disclosed
freight costs within our Route Based Services segment alongside the
lapping of a large pipeline fill for new customers in the prior
year within our Coffee, Tea and Extract Solutions segment.
Management will be implementing pricing initiatives during the
third quarter of 2018 that are specifically designed to mitigate
the freight and general inflation increases within the Route Based
Services segment.
- Interest expense was $19 million
compared to $24 million.
- Reported net income and net income per diluted share were
$12 million and $0.09, respectively, compared to reported net
loss and net loss per diluted share of $5
million and $0.03,
respectively.
- Reported EBITDA was $82 million
compared to $66 million in the prior
year. Adjusted EBITDA increased 2% to $83 million driven primarily by revenue growth,
offset in part by market inflation.
- Net cash provided by operating activities of $35 million less $29
million of capital expenditures resulted in reported free
cash flow of $6 million and adjusted
free cash flow of $12 million
(adjusted for acquisition, integration, and other working capital
adjustments) compared to adjusted free cash flow of $37 million in the prior year. In addition to the
timing of working capital activities which are expected to moderate
by the end of fiscal 2018, interest payments were made on both of
the senior notes in the second quarter of 2018 which accounted for
over $19 million of additional cash
usage relative to the prior year.
SECOND QUARTER 2018 REPORTING SEGMENT
PERFORMANCE
Route Based Services
- Revenue increased 7% (6% excluding the impact of foreign
exchange) to $413 million. A detailed
breakdown is tabulated below.
Route Based
Services
|
Revenue
Bridge
|
2017 Q2
Revenue
|
|
$
385.3
|
Crystal Rock
acquisition (a)
|
|
+13.4
|
HOD Water
related
|
|
+6.7
|
Retail
|
|
+3.1
|
OCS
|
|
-0.6
|
Other
|
|
-0.3
|
Foreign exchange
impact
|
|
+5.0
|
2018 Q2
Revenue
|
|
$
412.6
|
|
|
|
(a) Net of
revenues generated by PolyCycle which was sold in the
quarter.
|
|
|
- Gross profit increased 7% to $258
million, driven primarily by increased revenue, offset in
part by general market inflation including freight costs.
- Operating income increased 21% to $28
million, due primarily to an increase in gross profit,
offset in part by increased headcount associated with expanding our
U.S. based commercial customer growth initiatives as well as
general inflation including freight costs. Management is
implementing pricing initiatives during the third quarter that are
specifically designed to mitigate the freight and general inflation
increases within the Route Based Services operating segment.
Coffee, Tea and Extract Solutions
- Revenue decreased 5% (3% adjusting for the change in average
cost of coffee) driven by the pass-through of the reduction in
green coffee commodity costs, change in customer mix and the
lapping of the outsized volume growth from the second quarter of
last year as we increased our market share and saw one-time
benefits from new customer pipeline fills, offset in part by growth
in liquid coffee extracts and tea.
Coffee, Tea and
Extract Solutions
|
Revenue
Bridge
|
2017 Q2
Revenue
|
|
$
153.5
|
Coffee
volume
|
|
-4.7
|
Change in average
green coffee commodity pass-through costs
|
|
-4.1
|
Coffee
price/mix
|
|
-1.6
|
Liquid coffee and
extracts
|
|
+1.7
|
Other
|
|
+0.7
|
2018 Q2
Revenue
|
|
$
145.5
|
- Gross profit was $37 million
compared to $39 million and operating
income was $3 million compared to
$4 million as the segment was lapping
a large pipeline fill for new customers in the prior
year.
2018 FULL YEAR REVENUE, FREE CASH FLOW, COFFEE COMMODITY
COSTS AND FOREIGN EXCHANGE OUTLOOK FROM CONTINUING
OPERATIONS
Cott reiterated its targeted full year 2018 consolidated revenue
of over $2.35 billion and full year
2018 cash flow provided by operations of approximately $235 million with capital expenditures in the
range of $115 to $120 million, resulting in adjusted free cash
flow of $115 to $120 million (when excluding acquisition,
integration, tariffs and other working capital adjustments).
Green coffee commodity market costs have been declining since
the end of 2016. At current rates, in conjunction with the
timing of various pricing agreements, management would expect to
see an approximately 1% lowering of consolidated revenues with a
corresponding reduction to cost of goods sold in each of the third
and fourth quarters of 2018. In addition, with the
strengthening of the U.S. Dollar in the second quarter, using
exchange rates as of the end of the second quarter, management
would expect to see an approximately 0.5% lowering of consolidated
revenues in each of the third and fourth quarters of
2018.
DECLARATION OF DIVIDEND
Cott's Board of Directors has declared a dividend of
$0.06 per share on common shares,
payable in cash on September 5, 2018
to shareowners of record at the close of business on August 22, 2018.
SHARE REPURCHASE PROGRAM
Cott repurchased approximately 1 million shares at an average
price of $16.02 totaling
approximately $16 million during the
second quarter under its previously announced share repurchase
program. Cott intends to manage this program opportunistically.
The repurchase program is capped at $50
million, commenced on May 7,
2018 and ends on May 6,
2019.
There can be no assurance as to the precise number of shares, if
any, that will be repurchased under the share repurchase program in
the future, or the aggregate dollar amount of the shares to
be purchased in future periods. Cott may discontinue purchases
at any time, subject to compliance with applicable regulatory
requirements. Shares purchased pursuant to the share repurchase
program were cancelled.
SECOND QUARTER 2018 RESULTS CONFERENCE CALL
Cott Corporation will host a conference call today, August 2, 2018, 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: 6475508
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 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, blending of iced tea,
and extract solutions for the U.S. foodservice industry. Our
platform reaches over 2.4 million customers or delivery points
across North America and
Europe supported by strategically
located sales and distribution facilities and fleets, as well as
wholesalers and distributors. This enables us to efficiently
service residences, businesses, restaurant chains, hotels and
motels, small and large retailers, and healthcare facilities.
Non-GAAP Measures
To supplement its reporting of financial measures determined in
accordance with GAAP, Cott utilizes certain non-GAAP financial
measures. Cott excludes from GAAP revenue the impact of
foreign exchange, change in average costs of coffee and the impact
of additional trading days in the prior period to separate the
impact of these factors from Cott's results of operations. Cott
utilizes EBITDA and adjusted EBITDA on a global basis to separate
the impact of certain items from the underlying business.
Because Cott uses these adjusted financial results in the
management of its business, management believes this supplemental
information is useful to investors for their independent evaluation
and understanding of Cott's underlying business performance and the
performance of its management. Additionally, Cott supplements
its reporting of net cash provided by (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 as well as a working capital adjustment
related to the Concentrate Supply Agreement with Refresco 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, 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 amount of shares
that may be repurchased under the share repurchase program, the
execution of our strategic priorities, future financial and
operating trends and results (including Cott's outlook on 2018
revenue and 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
the Refresco transaction; our ability to realize the revenue and
cost synergies of recent acquisitions because of integration
difficulties and other challenges; the limited nature of our
indemnification rights under our recent acquisition agreements; 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
recent acquisitions; the impact of global financial events on our
financial results; credit rating changes; our ability to fully
realize the expected cost savings and/or operating efficiencies
from our restructuring activities; 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;
our ability to utilize tax attributes to offset future taxable
income; and the impact of the 2017 Tax Cuts and Jobs Act on our tax
obligations and effective tax rate.
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 30,
2018
|
|
July 1,
2017
|
|
June 30,
2018
|
|
July 1,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
603.6
|
|
$
|
580.6
|
|
$
|
1,164.4
|
|
$
|
1,117.5
|
Cost of
sales
|
|
302.2
|
|
|
293.5
|
|
|
589.5
|
|
|
561.6
|
Gross
profit
|
|
301.4
|
|
|
287.1
|
|
|
574.9
|
|
|
555.9
|
Selling, general and
administrative expenses
|
|
275.2
|
|
|
260.0
|
|
|
536.3
|
|
|
515.0
|
Loss on disposal of
property, plant and equipment, net
|
|
1.3
|
|
|
3.9
|
|
|
2.6
|
|
|
5.2
|
Acquisition and
integration expenses
|
|
4.2
|
|
|
6.7
|
|
|
9.2
|
|
|
14.0
|
Operating
income
|
|
20.7
|
|
|
16.5
|
|
|
26.8
|
|
|
21.7
|
Other income,
net
|
|
(12.2)
|
|
|
(1.0)
|
|
|
(32.4)
|
|
|
(2.6)
|
Interest expense,
net
|
|
18.6
|
|
|
23.6
|
|
|
39.4
|
|
|
38.9
|
Income (loss) from
continuing operations before income taxes
|
|
14.3
|
|
|
(6.1)
|
|
|
19.8
|
|
|
(14.6)
|
Income tax expense
(benefit)
|
|
2.1
|
|
|
(1.6)
|
|
|
3.0
|
|
|
0.1
|
Net income (loss)
from continuing operations
|
$
|
12.2
|
|
$
|
(4.5)
|
|
$
|
16.8
|
|
$
|
(14.7)
|
Net (loss) income
from discontinued operations, net of income taxes
|
|
(1.4)
|
|
|
(17.8)
|
|
|
356.0
|
|
|
(42.0)
|
Net income
(loss)
|
$
|
10.8
|
|
$
|
(22.3)
|
|
$
|
372.8
|
|
$
|
(56.7)
|
Less: Net income
attributable to non-controlling interests - discontinued
operations
|
|
-
|
|
|
2.3
|
|
|
0.6
|
|
|
4.3
|
Net income (loss)
attributable to Cott Corporation
|
$
|
10.8
|
|
$
|
(24.6)
|
|
$
|
372.2
|
|
$
|
(61.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share attributable to Cott Corporation
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.09
|
|
$
|
(0.03)
|
|
$
|
0.12
|
|
$
|
(0.11)
|
|
Discontinued
operations
|
$
|
(0.01)
|
|
$
|
(0.15)
|
|
$
|
2.54
|
|
$
|
(0.33)
|
|
Net income
(loss)
|
$
|
0.08
|
|
$
|
(0.18)
|
|
$
|
2.66
|
|
$
|
(0.44)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.09
|
|
$
|
(0.03)
|
|
$
|
0.12
|
|
$
|
(0.11)
|
|
Discontinued
operations
|
$
|
(0.01)
|
|
$
|
(0.15)
|
|
$
|
2.50
|
|
$
|
(0.33)
|
|
Net income
(loss)
|
$
|
0.08
|
|
$
|
(0.18)
|
|
$
|
2.62
|
|
$
|
(0.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
139,768
|
|
|
139,000
|
|
|
139,860
|
|
|
138,867
|
|
Diluted
|
|
141,661
|
|
|
139,000
|
|
|
142,120
|
|
|
138,867
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.06
|
|
$
|
0.06
|
|
$
|
0.12
|
|
$
|
0.12
|
COTT
CORPORATION
|
|
|
|
|
EXHIBIT
2
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
(in millions of
U.S. dollars, except share amounts, U.S. GAAP)
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
December 30,
2017
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
162.4
|
|
$
|
91.9
|
Accounts receivable,
net of allowance of $8.3 ($7.8 as of December 30, 2017)
|
|
309.9
|
|
|
285.0
|
Inventories
|
|
141.0
|
|
|
127.6
|
Prepaid expenses and
other current assets
|
|
27.5
|
|
|
20.7
|
Current assets of
discontinued operations
|
|
-
|
|
|
408.7
|
Total current
assets
|
|
640.8
|
|
|
933.9
|
Property, plant and
equipment, net
|
|
583.8
|
|
|
584.2
|
Goodwill
|
|
1,125.5
|
|
|
1,104.7
|
Intangible assets,
net
|
|
744.7
|
|
|
751.1
|
Deferred tax
assets
|
|
1.4
|
|
|
2.3
|
Other long-term
assets, net
|
|
39.0
|
|
|
39.4
|
Long-term assets of
discontinued operations
|
|
-
|
|
|
677.5
|
Total
assets
|
$
|
3,135.2
|
|
$
|
4,093.1
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
borrowings
|
|
6.9
|
|
|
-
|
Short-term borrowings
required to be repaid or extinguished as part of
divestiture
|
|
-
|
|
|
220.3
|
Current maturities of
long-term debt
|
|
1.8
|
|
|
5.1
|
Accounts payable and
accrued liabilities
|
|
421.5
|
|
|
412.9
|
Current liabilities
of discontinued operations
|
|
-
|
|
|
295.1
|
Total current
liabilities
|
|
430.2
|
|
|
933.4
|
Long-term
debt
|
|
1,255.5
|
|
|
1,542.6
|
Debt required to be
repaid or extinguished as part of divestiture
|
|
-
|
|
|
519.0
|
Deferred tax
liabilities
|
|
134.3
|
|
|
98.4
|
Other long-term
liabilities
|
|
76.3
|
|
|
68.2
|
Long-term liabilities
of discontinued operations
|
|
-
|
|
|
45.8
|
Total
liabilities
|
|
1,896.3
|
|
|
3,207.4
|
Equity
|
|
|
|
|
|
Common shares, no par
- 139,434,706 (December 30, 2017 - 139,488,805) shares
issued
|
|
918.4
|
|
|
917.1
|
Additional
paid-in-capital
|
|
67.3
|
|
|
69.1
|
Retained earnings
(accumulated deficit)
|
|
333.4
|
|
|
(12.2)
|
Accumulated other
comprehensive loss
|
|
(80.2)
|
|
|
(94.4)
|
Total Cott
Corporation equity
|
|
1,238.9
|
|
|
879.6
|
Non-controlling
interests
|
|
-
|
|
|
6.1
|
Total
equity
|
|
1,238.9
|
|
|
885.7
|
Total liabilities
and equity
|
$
|
3,135.2
|
|
$
|
4,093.1
|
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 30,
2018
|
|
July 1,
2017
|
|
June 30,
2018
|
|
July 1,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
10.8
|
|
$
|
(22.3)
|
|
$
|
372.8
|
|
$
|
(56.7)
|
|
Net (loss) income
from discontinued operations, net of income taxes
|
|
(1.4)
|
|
|
(17.8)
|
|
|
356.0
|
|
|
(42.0)
|
|
Net income (loss)
from continuing operations
|
$
|
12.2
|
|
$
|
(4.5)
|
|
$
|
16.8
|
|
$
|
(14.7)
|
|
Adjustments to
reconcile net income (loss) from continuing operations to cash
flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
48.7
|
|
|
48.8
|
|
|
96.1
|
|
|
92.4
|
|
Amortization of
financing fees
|
|
0.8
|
|
|
0.5
|
|
|
1.7
|
|
|
0.8
|
|
Amortization of
senior notes premium
|
|
-
|
|
|
(1.2)
|
|
|
(0.4)
|
|
|
(2.8)
|
|
Share-based
compensation expense
|
|
4.4
|
|
|
5.0
|
|
|
7.8
|
|
|
9.0
|
|
Provision for
deferred income taxes
|
|
2.9
|
|
|
2.7
|
|
|
2.7
|
|
|
4.5
|
|
Commodity hedging
loss (gain), net
|
|
-
|
|
|
0.4
|
|
|
0.3
|
|
|
(1.5)
|
|
Gain on sale of
business
|
|
(6.0)
|
|
|
-
|
|
|
(6.0)
|
|
|
-
|
|
Gain on
extinguishment of debt
|
|
-
|
|
|
(1.5)
|
|
|
(7.1)
|
|
|
(1.5)
|
|
Loss on disposal of
property, plant and equipment, net
|
|
1.3
|
|
|
3.9
|
|
|
2.6
|
|
|
5.2
|
|
Other non-cash
items
|
|
(2.2)
|
|
|
(3.0)
|
|
|
(2.1)
|
|
|
(4.8)
|
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(6.5)
|
|
|
(20.4)
|
|
|
(19.2)
|
|
|
(20.3)
|
|
|
Inventories
|
|
(4.6)
|
|
|
(1.2)
|
|
|
(13.7)
|
|
|
(9.6)
|
|
|
Prepaid expenses and
other current assets
|
|
(2.3)
|
|
|
3.7
|
|
|
(6.6)
|
|
|
(2.8)
|
|
|
Other
assets
|
|
0.2
|
|
|
4.2
|
|
|
1.2
|
|
|
4.1
|
|
|
Accounts payable and
accrued liabilities and other liabilities
|
|
(13.9)
|
|
|
24.0
|
|
|
(16.5)
|
|
|
34.5
|
|
|
Net cash provided by
operating activities from continuing operations
|
|
35.0
|
|
|
61.4
|
|
|
57.6
|
|
|
92.5
|
Cash flows from
investing activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions, net of
cash received
|
|
(38.8)
|
|
|
(25.0)
|
|
|
(66.6)
|
|
|
(30.0)
|
|
|
Additions to
property, plant and equipment
|
|
(28.9)
|
|
|
(30.7)
|
|
|
(58.7)
|
|
|
(58.9)
|
|
|
Additions to
intangible assets
|
|
(2.0)
|
|
|
(1.6)
|
|
|
(4.2)
|
|
|
(2.6)
|
|
|
Proceeds from sale of
property, plant and equipment
|
|
1.0
|
|
|
(1.2)
|
|
|
2.9
|
|
|
2.9
|
|
|
Proceeds from sale of
business, net of cash sold
|
|
12.8
|
|
|
-
|
|
|
12.8
|
|
|
-
|
|
|
Other investing
activities
|
|
0.1
|
|
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
Net cash used in
investing activities from continuing operations
|
|
(55.8)
|
|
|
(58.3)
|
|
|
(113.5)
|
|
|
(88.2)
|
Cash flows from
financing activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments of long-term
debt
|
|
(0.6)
|
|
|
(101.2)
|
|
|
(263.3)
|
|
|
(101.6)
|
|
|
Issuance of long-term
debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
750.0
|
|
|
Borrowings under
ABL
|
|
0.4
|
|
|
-
|
|
|
1.0
|
|
|
-
|
|
|
Payments under
ABL
|
|
(0.4)
|
|
|
-
|
|
|
(1.0)
|
|
|
-
|
|
|
Premiums and costs
paid upon extinguishment of long-term debt
|
|
-
|
|
|
(7.7)
|
|
|
(12.5)
|
|
|
(7.7)
|
|
|
Issuance of common
shares
|
|
2.4
|
|
|
0.3
|
|
|
4.2
|
|
|
0.8
|
|
|
Common shares
repurchased and cancelled
|
|
(16.1)
|
|
|
-
|
|
|
(21.7)
|
|
|
(1.8)
|
|
|
Financing
fees
|
|
-
|
|
|
(1.7)
|
|
|
(1.5)
|
|
|
(11.1)
|
|
|
Dividends paid to
common shareholders
|
|
(8.4)
|
|
|
(8.3)
|
|
|
(16.8)
|
|
|
(16.7)
|
|
|
Payment of deferred
consideration for acquisitions
|
|
(2.8)
|
|
|
-
|
|
|
(2.8)
|
|
|
-
|
|
|
Other financing
activities
|
|
3.4
|
|
|
1.5
|
|
|
2.1
|
|
|
0.5
|
|
|
Net cash (used in)
provided by financing activities from continuing
operations
|
|
(22.1)
|
|
|
(117.1)
|
|
|
(312.3)
|
|
|
612.4
|
Cash flows from
discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
of discontinued operations
|
|
(3.3)
|
|
|
43.5
|
|
|
(77.7)
|
|
|
8.7
|
|
|
Investing activities
of discontinued operations
|
|
-
|
|
|
(9.2)
|
|
|
1,228.6
|
|
|
(23.4)
|
|
|
Financing activities
of discontinued operations
|
|
-
|
|
|
(330.5)
|
|
|
(769.7)
|
|
|
(601.3)
|
|
|
Net cash (used in)
provided by discontinued operations
|
|
(3.3)
|
|
|
(296.2)
|
|
|
381.2
|
|
|
(616.0)
|
|
|
Effect of exchange
rate changes on cash
|
|
(3.7)
|
|
|
2.9
|
|
|
(8.5)
|
|
|
4.4
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
(49.9)
|
|
|
(407.3)
|
|
|
4.5
|
|
|
5.1
|
Cash and cash
equivalents and restricted cash, beginning of period
|
|
212.3
|
|
|
530.5
|
|
|
157.9
|
|
|
118.1
|
Cash and cash
equivalents and restricted cash, end of period
|
|
162.4
|
|
|
123.2
|
|
|
162.4
|
|
|
123.2
|
Cash and cash
equivalents and restricted cash of discontinued operations, end of
period
|
|
-
|
|
|
55.0
|
|
|
-
|
|
|
55.0
|
Cash and cash
equivalents and restricted cash from continuing operations, end of
period
|
$
|
162.4
|
|
$
|
68.2
|
|
$
|
162.4
|
|
$
|
68.2
|
COTT
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT
4
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
U.S. dollars, U.S. GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
259.5
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
259.5
|
Coffee and tea
services
|
|
|
48.1
|
|
|
118.8
|
|
|
0.9
|
|
|
(1.5)
|
|
|
166.3
|
Retail
|
|
|
61.1
|
|
|
-
|
|
|
16.8
|
|
|
-
|
|
|
77.9
|
Other
|
|
|
43.9
|
|
|
26.7
|
|
|
29.3
|
|
|
-
|
|
|
99.9
|
Total
|
|
$
|
412.6
|
|
$
|
145.5
|
|
$
|
47.0
|
|
$
|
(1.5)
|
|
$
|
603.6
|
Gross
Profit
|
|
$
|
257.6
|
|
$
|
37.4
|
|
$
|
6.4
|
|
$
|
-
|
|
$
|
301.4
|
Gross Margin
%
|
|
|
62.4%
|
|
|
25.7%
|
|
|
13.6%
|
|
|
-
|
|
|
49.9%
|
Operating income
(loss)
|
|
$
|
27.7
|
|
$
|
3.2
|
|
$
|
(10.2)
|
|
$
|
-
|
|
$
|
20.7
|
Depreciation and
Amortization
|
|
$
|
41.1
|
|
$
|
5.7
|
|
$
|
1.9
|
|
$
|
-
|
|
$
|
48.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended July 1, 2017
|
(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
|
|
$
|
244.6
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
244.6
|
Coffee and tea
services
|
|
|
44.8
|
|
|
129.0
|
|
|
0.7
|
|
|
-
|
|
|
174.5
|
Retail
|
|
|
55.7
|
|
|
-
|
|
|
10.5
|
|
|
-
|
|
|
66.2
|
Other
|
|
|
40.2
|
|
|
24.5
|
|
|
30.6
|
|
|
-
|
|
|
95.3
|
Total
|
|
$
|
385.3
|
|
$
|
153.5
|
|
$
|
41.8
|
|
$
|
-
|
|
$
|
580.6
|
Gross Profit
(a)
|
|
$
|
241.1
|
|
$
|
39.3
|
|
$
|
6.7
|
|
$
|
-
|
|
$
|
287.1
|
Gross Margin
%
|
|
|
62.6%
|
|
|
25.6%
|
|
|
16.0%
|
|
|
-
|
|
|
49.4%
|
Operating income
(loss)
|
|
$
|
22.9
|
|
$
|
4.0
|
|
$
|
(10.4)
|
|
$
|
-
|
|
$
|
16.5
|
Depreciation and
Amortization
|
|
$
|
41.4
|
|
$
|
5.7
|
|
$
|
1.7
|
|
$
|
-
|
|
$
|
48.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
488.4
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
488.4
|
Coffee and tea
services
|
|
|
94.4
|
|
|
236.0
|
|
|
1.6
|
|
|
(2.5)
|
|
|
329.5
|
Retail
|
|
|
115.8
|
|
|
-
|
|
|
32.2
|
|
|
-
|
|
|
148.0
|
Other
|
|
|
85.1
|
|
|
55.6
|
|
|
57.9
|
|
|
(0.1)
|
|
|
198.5
|
Total
|
|
$
|
783.7
|
|
$
|
291.6
|
|
$
|
91.7
|
|
$
|
(2.6)
|
|
$
|
1,164.4
|
Gross Profit
(a)
|
|
$
|
485.4
|
|
$
|
76.1
|
|
$
|
13.4
|
|
$
|
-
|
|
$
|
574.9
|
Gross Margin
%
|
|
|
61.9%
|
|
|
26.1%
|
|
|
14.6%
|
|
|
-
|
|
|
49.4%
|
Operating income
(loss)
|
|
$
|
40.1
|
|
$
|
7.3
|
|
$
|
(20.6)
|
|
$
|
-
|
|
$
|
26.8
|
Depreciation and
Amortization
|
|
$
|
80.9
|
|
$
|
11.4
|
|
$
|
3.8
|
|
$
|
-
|
|
$
|
96.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended July 1, 2017
|
(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
|
|
$
|
462.6
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
462.6
|
Coffee and tea
services
|
|
|
90.7
|
|
|
248.7
|
|
|
1.3
|
|
|
-
|
|
|
340.7
|
Retail
|
|
|
107.5
|
|
|
-
|
|
|
22.2
|
|
|
-
|
|
|
129.7
|
Other
|
|
|
76.8
|
|
|
48.1
|
|
|
59.6
|
|
|
-
|
|
|
184.5
|
Total
|
|
$
|
737.6
|
|
$
|
296.8
|
|
$
|
83.1
|
|
$
|
-
|
|
$
|
1,117.5
|
Gross Profit
(a)
|
|
$
|
461.7
|
|
$
|
81.1
|
|
$
|
13.1
|
|
$
|
-
|
|
$
|
555.9
|
Gross Margin
%
|
|
|
62.6%
|
|
|
27.3%
|
|
|
15.8%
|
|
|
-
|
|
|
49.7%
|
Operating income
(loss)
|
|
$
|
32.3
|
|
$
|
9.6
|
|
$
|
(20.2)
|
|
$
|
-
|
|
$
|
21.7
|
Depreciation and
Amortization
|
|
$
|
77.4
|
|
$
|
11.2
|
|
$
|
3.8
|
|
$
|
-
|
|
$
|
92.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) 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 30, 2018
|
|
Route Based
Services
|
Coffee, Tea
and
Extract
Solutions
|
All
Other
|
Eliminations
|
Cott
(a)
|
Change in
revenue
|
$
|
27.3
|
$
|
(8.0)
|
$
|
5.2
|
$
|
(1.5)
|
$
|
23.0
|
Impact of foreign
exchange (b)
|
$
|
(5.0)
|
$
|
-
|
$
|
(0.9)
|
$
|
-
|
$
|
(5.9)
|
Change excluding
foreign exchange
|
$
|
22.3
|
$
|
(8.0)
|
$
|
4.3
|
$
|
(1.5)
|
$
|
17.1
|
Percentage change in
revenue
|
|
7.1%
|
|
-5.2%
|
|
12.4%
|
|
100.0%
|
|
4.0%
|
Percentage change in
revenue excluding foreign exchange
|
|
5.8%
|
|
-5.2%
|
|
10.3%
|
|
100.0%
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
(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.
|
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 30,
2018
|
|
July 1,
2017
|
|
June 30,
2018
|
|
July 1,
2017
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
$
|
12.2
|
|
$
|
(4.5)
|
|
$
|
16.8
|
|
$
|
(14.7)
|
Interest expense,
net
|
18.6
|
|
23.6
|
|
39.4
|
|
38.9
|
Income tax expense
(benefit)
|
2.1
|
|
(1.6)
|
|
3.0
|
|
0.1
|
Depreciation and
amortization
|
48.7
|
|
48.8
|
|
96.1
|
|
92.4
|
EBITDA
|
$
|
81.6
|
|
$
|
66.3
|
|
$
|
155.3
|
|
$
|
116.7
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs (a), (b)
|
4.2
|
|
6.7
|
|
9.2
|
|
14.0
|
Share-based
compensation costs (c)
|
3.6
|
|
4.1
|
|
6.0
|
|
6.8
|
Commodity hedging
loss (gain), net (d)
|
-
|
|
0.4
|
|
0.3
|
|
(1.5)
|
Foreign exchange and
other (gains) losses, net (e)
|
(3.0)
|
|
0.4
|
|
(11.2)
|
|
(0.9)
|
Loss on disposal of
property, plant and equipment, net (f)
|
1.3
|
|
4.0
|
|
2.6
|
|
5.7
|
Gain on
extinguishment of long-term debt (g)
|
-
|
|
(1.5)
|
|
(7.1)
|
|
(1.5)
|
Gain on sale
(h)
|
(6.0)
|
|
-
|
|
(6.0)
|
|
-
|
Other adjustments,
net (i)
|
1.1
|
|
1.0
|
|
(1.8)
|
|
2.0
|
Adjusted
EBITDA
|
$
|
82.8
|
|
$
|
81.4
|
|
$
|
147.3
|
|
$
|
141.3
|
|
(a) Includes $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 and $0.9 million and $2.2 million of
share-based compensation costs for the three and six months ended
July 1, 2017, respectively, related to awards granted in connection
with the acquisition of our S&D and Eden businesses.
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
Location in
Consolidated Statements of Operations
|
|
June 30,
2018
|
|
July 1,
2017
|
|
June 30,
2018
|
|
July 1,
2017
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(b) Acquisition and
integration costs
|
Acquisition and
integration expenses
|
|
$
|
4.2
|
|
$
|
6.7
|
|
$
|
9.2
|
|
$
|
14.0
|
(c) Share-based
compensation costs
|
Selling,
general and administrative expenses
|
|
|
3.6
|
|
|
4.1
|
|
|
6.0
|
|
|
6.8
|
(d) Commodity hedging
loss (gain), net
|
Cost of
sales
|
|
|
-
|
|
|
0.4
|
|
|
0.3
|
|
|
(1.5)
|
(e) Foreign exchange
and other (gains) losses, net
|
Other income,
net
|
|
|
(3.0)
|
|
|
0.4
|
|
|
(11.2)
|
|
|
(0.9)
|
(f) Loss on disposal
of property, plant and equipment, net
|
Loss on
disposal of property, plant and equipment, net
|
|
|
1.3
|
|
|
4.0
|
|
|
2.6
|
|
|
5.7
|
(g) Gain on
extinguishment of long-term debt
|
Other income,
net
|
|
|
-
|
|
|
(1.5)
|
|
|
(7.1)
|
|
|
(1.5)
|
(h) Gain on
sale
|
Other income,
net
|
|
|
(6.0)
|
|
|
-
|
|
|
(6.0)
|
|
|
-
|
(i) Other
adjustments, net
|
Other income,
net
|
|
|
(2.7)
|
|
|
-
|
|
|
(6.6)
|
|
|
-
|
|
Selling,
general and administrative expenses
|
|
|
2.6
|
|
|
1.0
|
|
|
3.6
|
|
|
2.0
|
|
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 30,
2018
|
|
July 1,
2017
|
|
|
|
|
|
|
Net cash provided
by operating activities from continuing operations
|
$
|
35.0
|
|
$
|
61.4
|
|
Less: Additions
to property, plant, and equipment
|
|
(28.9)
|
|
|
(30.7)
|
Free Cash
Flow
|
|
$
6.1
|
|
$
|
30.7
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
Acquisition and
integration cash costs
|
|
3.8
|
|
|
6.6
|
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
|
2.2
|
|
|
-
|
Adjusted Free Cash
Flow
|
$
|
12.1
|
|
$
|
37.3
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
June 30,
2018
|
|
July 1,
2017
|
|
|
|
|
|
|
Net cash provided
by operating activities from continuing operations
|
$
|
57.6
|
|
$
|
92.5
|
|
Less: Additions
to property, plant, and equipment
|
|
(58.7)
|
|
|
(58.9)
|
Free Cash
Flow
|
$
|
(1.1)
|
|
$
|
33.6
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
Acquisition and
integration cash costs
|
|
9.4
|
|
|
12.3
|
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
|
11.1
|
|
|
-
|
Adjusted Free Cash
Flow
|
$
|
19.4
|
|
$
|
45.9
|
|
(a) Increase in
working capital related to the Concentrate Supply Agreement with
Refresco in connection with the Transaction.
|
COTT CORPORATION
AND COFFEE, TEA, AND EXTRACT SOLUTIONS REPORTING
SEGMENT
|
|
|
|
|
|
EXHIBIT
8
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - ANALYSIS OF REVENUE
|
|
|
|
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cott
(a)
|
|
Coffee, Tea and
Extract Solutions
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
|
June 30,
2018
|
|
July 1,
2017
|
|
June 30,
2018
|
|
July 1,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
603.6
|
|
$
|
580.6
|
|
$
|
145.5
|
|
$
|
153.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
revenue
|
$
|
23.0
|
|
|
|
|
$
|
(8.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change
in revenue
|
|
4.0%
|
|
|
|
|
|
-5.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of foreign
exchange (b)
|
$
|
(5.9)
|
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of change in
average cost of green coffee (c)
|
$
|
4.1
|
|
|
|
|
$
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change excluding
foreign exchange and impact of change in average cost of green
coffee
|
$
|
21.2
|
|
|
|
|
$
|
(3.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change
in revenue excluding foreign exchange and impact of change in
average cost of green coffee
|
|
3.7%
|
|
|
|
|
|
-2.5%
|
|
|
|
|
(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.
|
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SOURCE Cott Corporation