Primo Water Announces Resolution of Contingent Liabilities
April 07 2017 - 8:45AM
Primo Water Corporation (Nasdaq:PRMW) today announced the
resolution of outstanding contingencies associated with its
previous acquisition of the Omnifrio single-serve beverage business
(including deferred payments) and arbitrations involving two former
regional operators in its Exchange business.
“We are pleased to have resolved these
contingencies as we remain focused on the tremendous growth
opportunities available to us through our recent acquisition of
Glacier Water and the extension of our DS Services contract,”
commented Billy D. Prim, Primo Water’s Chief Executive Officer.
The Company reached a resolution on its Omnifrio
deferred payment liability, which will result in operating income
of $1.2 million, a cash payment of $0.7 million and the sale of
certain assets related to the Flavorstation discontinued
operations. Primo also reached resolution with two former
regional operators in the Exchange business, which will result in a
charge of $3.8 million. The net impact to first quarter results for
both of these matters is a non-recurring charge of $2.6
million.
About Primo Water
Corporation
Primo Water Corporation (Nasdaq:PRMW) is North
America’s leading single source provider of multi-gallon purified
bottled water, self-service refill water and water dispensers sold
through major retailers throughout the United States and
Canada. For more information and to learn more about Primo
Water, please visit our website at www.primowater.com.
Forward-Looking StatementsCertain statements contained herein
are not based on historical fact and are "forward-looking
statements" within the meaning of the applicable securities laws
and regulations. These statements include our focus on the
tremendous growth opportunities available to us through our recent
acquisition of Glacier Water and the extension of our DS Services
contract and can otherwise be identified by the use of words
such as "anticipate," "believe," "could," "estimate," "expect,"
"feel," "forecast," "intend," "may," "plan," "potential,"
"project," “seek,” "should," "would,” “will,” and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Owing to the uncertainties inherent in
forward-looking statements, actual results could differ materially
from those stated herein. Factors that could cause actual results
to differ materially from those in the forward-looking statements
include, but are not limited to, adverse changes in the Company's
relationships with its independent bottlers, distributors and
suppliers, the loss of major retail customers of the Company or the
reduction in volume or change in timing of purchases by major
retail customers, lower than anticipated consumer and retailer
acceptance of and demand for the Company's products and services,
the entry of a competitor with greater resources into the
marketplace, competition and other business conditions in the water
and water dispenser industries in general, the Company’s
experiencing product liability, product recall or higher than
anticipated rates of sales returns associated with product quality
or safety issues, the loss of key Company personnel, dependence on
key management information systems, changes in the regulatory
framework governing the Company's business, the Company's inability
to efficiently expand operations and capacity to meet growth, the
Company's inability to develop, introduce and produce new product
offerings within the anticipated timeframe or at all, the Company’s
inability to comply with its covenants in its credit facility,
significant liabilities or costs associated with litigation or
other legal proceedings, general economic conditions, the possible
adverse effects that decreased discretionary consumer spending may
have on the Company’s business, difficulties with the successful
integration and realization of the anticipated benefits and
synergies from the Glacier Water acquisition, including
incorporation of internal controls and critical information
technology systems such as management information systems and
related tools, failure to manage our expanded operations following
the Glacier Water acquisition, the incurrence of costs related to
the Glacier Water acquisition, changes to the Company’s board of
directors and management in connection with the Glacier Water
acquisition, the impact of the loss or non-retention of certain key
personnel after the Glacier Water acquisition , the termination or
renegotiation of agreements with customers, suppliers and other
business partners in connection with the Glacier Water acquisition,
the possibility that the Company’s financial results following the
Glacier Water acquisition may differ materially from the unaudited
pro forma financial statements that have been or will be made
available, the restrictions imposed upon our business as a result
the restrictive covenants contained in our credit agreements, the
possibility that we may fail to generate sufficient cash flow to
service our debt obligations, and the negative effects that global
capital and credit market issues may have on our liquidity, the
costs of our borrowing and our operations of our suppliers,
bottlers, distributors and customers as well as other risks
described more fully in the Company's filings with the Securities
and Exchange Commission, including its Annual Report on Form 10-K
filed on March 16, 2017 and its subsequent filings under the
Securities Exchange Act of 1934. Forward-looking statements reflect
management's analysis as of the date of this press release. The
Company does not undertake to revise these statements to reflect
subsequent developments, other than in its regular, quarterly
earnings releases or as otherwise required by applicable securities
laws.
Contact:
Primo Water Corporation
Mark Castaneda, Chief Financial Officer
(336) 331-4000
ICR Inc.
Katie Turner
Hunter Wells
(646) 277-1228
Primo Water (NASDAQ:PRMW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Primo Water (NASDAQ:PRMW)
Historical Stock Chart
From Apr 2023 to Apr 2024