(Unless stated otherwise, all fourth quarter 2018 comparisons
are relative to the fourth quarter of 2017 and all fiscal year 2018
comparisons are relative to fiscal year 2017; all information is in
U.S. dollars.)
TORONTO and TAMPA, Florida, Feb.
22, 2019 Cott Corporation (NYSE:COT) (TSX:BCB) today
announced its results for the fiscal year and fourth quarter ended
December 29, 2018.
FISCAL YEAR 2018 HIGHLIGHTS – CONTINUING
OPERATIONS
- Increased revenue 5% to $2,373
million compared to $2,270
million.
- Increased gross profit 4% to $1,176
million compared to $1,128
million.
- Increased operating income 34% to $59
million compared to $44
million.
- Reported net income and net income per diluted share of
$29 million and $0.21, respectively, compared to reported net
loss and net loss per diluted share of $4
million and $0.03,
respectively. Adjusted EBITDA increased 6% to $312 million.
- Net cash provided by operating activities of $244 million less $130
million of capital expenditures resulted in reported free
cash flow of $114 million and
adjusted free cash flow of $150
million, representing a $72
million or a 91% improvement from the comparable prior
period due to increased earnings as well as working capital
benefits.
- Returned approximately $108
million to shareowners through $33
million in quarterly dividends and $75 million of share repurchases.
"With the sale of our traditional business at the beginning of
2018, we became a growth-oriented company with predominantly
recurring revenues and multiple scalable platforms. This allowed us
to deliver strong financial results in 2018: we grew revenue by 5%
and delivered on our adjusted free cash flow commitment, which came
in at $125 million when excluding
approximately $25 million of working
capital benefits. This strong performance enabled us to execute our
capital deployment strategy that increases the pace and scale of
tuck-in acquisitions, returns funds to shareholders, and improves
our balance sheet," commented Tom
Harrington, Cott's Chief Executive Officer.
FOURTH QUARTER 2018 GLOBAL PERFORMANCE FROM CONTINUING
OPERATIONS
- Revenue increased 5% (7% excluding the impact of foreign
exchange and adjusting for the change in average cost of coffee
within our Coffee, Tea and Extract Solutions segment) to
$599 million, driven primarily by
growth in customers and volume and an increase in the average
selling price per 5-gallon bottle within our Route Based Services
segment.
Continuing
Operations
|
Revenue
Bridge
|
2017 Q4
Revenue
|
$
|
571.3
|
Route Based
Services
|
+30.2
|
Coffee, Tea and
Extract Solutions
|
-0.3
|
Foreign
exchange (a)
|
-5.7
|
Change in average
green coffee commodity
pass-through costs
|
-5.9
|
Other
|
+9.6
|
2018 Q4
Revenue
|
$
|
599.2
|
|
|
(a) See Exhibit 5 for details by
reporting segment
|
|
- Gross profit increased 4% to $290
million, driven primarily by overall revenue growth offset
in part by increased freight and transportation costs as well as
foreign exchange.
- Selling, general and administrative expenses increased 4% to
$276 million, driven primarily by
acquisitions made during the year as well as $5 million of increased incentive accruals made
within our Route Based Services operating segment as a result of
reaching a number of internal financial targets during the
quarter.
- Interest expense was $19 million
compared to $23 million.
- Income tax benefit was $9 million
compared to $31 million as we
recorded a $6 million of valuation
allowance release and a $2 million
tax reserve release in 2018 compared to a $33 million income tax benefit in connection with
U.S. tax reform in 2017.
- Reported net income and net income per diluted share were
$4 million and $0.03, respectively, compared to reported net
income and net income per diluted share of $10 million and $0.07, respectively, driven primarily by the
aforementioned income tax activity.
- Reported EBITDA was $63 million
compared to $49 million in the prior
year. Adjusted EBITDA was $72 million
compared to $70 million in the prior
year as growth within the Route Based Services segment driven by
increased customers, volume, pricing and acquisitions, was
partially offset by increased freight and transportation costs, the
impact of foreign exchange and approximately $5 million of additional incentive accruals made
within the Route Based Services operating segment as a result of
meeting certain financial targets.
- Net cash provided by operating activities of $98 million less $36
million of capital expenditures resulted in free cash flow
of $62 million and adjusted free cash
flow of $65 million (adjusted for
acquisition, integration and other cash costs).
"Our fourth quarter operations delivered on our revenue goals,
met our external EBITDA expectations, albeit at the lower end due
to some additional incentive accruals that were recorded within our
Route Based Services segment, and exceeded our free cash flow
targets," commented Mr. Harrington. "With these results and
good momentum going into 2019, we believe we are well positioned to
deliver on our free cash flow target for 2019 as well as our goal
of 4% to 5% topline growth," continued Mr. Harrington.
FOURTH QUARTER 2018 REPORTING SEGMENT
PERFORMANCE
Route Based Services
- Revenue increased 7% (8% excluding the impact of foreign
exchange) to $393 million, driven by
growth coming from a positive mix shift in our North American
customer base, growth of our overall customer base and the benefits
of our North American pricing initiatives. Our customer base grew
5% relative to the prior year (over 1% excluding Crystal Rock and Mountain Valley) with volume up
4%, and average selling price per 5-gallon bottle up 3% in the
quarter.
Route Based
Services
|
Revenue
Bridge
|
2017 Q4
Revenue
|
$
|
366.8
|
HOD Water
related
|
+22.8
|
Retail
|
+1.9
|
OCS
|
+2.0
|
Other
|
+3.5
|
Change excluding
foreign exchange impact(a)
|
+30.2
|
Foreign exchange
impact
|
-4.5
|
2018 Q4
Revenue
|
$
|
392.5
|
|
|
(a) Crystal Rock and Mountain Valley
contributed $22.0 million to revenue
|
- Gross profit increased 5% to $240
million, due primarily to growth in revenue offset in part
increased freight and transportation costs as well as foreign
exchange.
Coffee, Tea and Extract Solutions
- Revenue decreased 4% to $156
million (flat adjusting for the change in average cost of
coffee) driven primarily by the pass-through of lower green coffee
commodity costs, the competitive environment, change in customer
mix and the lapping of outsized coffee and tea volume growth last
year, offset in part by growth in extracts and other service
channels. Coffee and tea volumes were flat during the quarter while
liquid extract volume increased by 4%.
Coffee, Tea and
Extract Solutions
|
Revenue
Bridge
|
2017 Q4
Revenue
|
|
$
|
162.0
|
Coffee
volume
|
|
-0.7
|
Coffee
price/mix
|
|
-0.6
|
Liquid coffee and
extracts
|
|
+0.5
|
Other
|
|
+0.5
|
Change excluding
change in average
green coffee commodity pass-through costs
|
|
-0.3
|
Change in average
green coffee commodity
pass-through costs
|
|
-5.9
|
2018 Q4
Revenue
|
|
$
|
155.8
|
- Gross profit was $41 million
compared to $44 million and operating
income was $4 million compared to
$3 million as the effect of a
price/mix shift into larger quick service restaurants was more than
offset by liquid extract growth and reduced SG&A costs.
FISCAL YEAR 2018 GLOBAL PERFORMANCE FROM CONTINUING
OPERATIONS
- Revenue increased 5% (5% excluding the impact of foreign
exchange, adjusting for the change in the average cost of coffee,
and adjusting for comparable trading days) to $2,373 million, driven primarily by growth within
the Route Based Services segment including acquisitions. Our Route
Based Services operating segment saw customers increase 5% (over 1%
excluding Crystal Rock and Mountain
Valley), volume up 4%, and average selling price per 5-gallon
bottle up 2%.
Continuing
Operations
|
Revenue
Bridge
|
2017
Revenue
|
$
|
2,269.7
|
Route Based
Services
|
+90.0
|
Coffee, Tea and
Extract Solutions
|
+5.5
|
Foreign
exchange (a)
|
+11.8
|
Change in average
green coffee commodity
pass-through costs
|
-15.2
|
Other
|
+17.5
|
Fewer trading
days (a)
|
-6.4
|
2018
Revenue
|
$
|
2,372.9
|
|
|
(a) See Exhibit 5 for details by
reporting segment
|
|
- Gross profit increased 4% to $1,176
million, driven primarily by revenue growth which included
the implementation of pricing actions taken during the year that
mostly offset the general inflation prevalent in 2018 within the
Route Based Services segment.
- Income tax benefit was $5 million
compared to $30 million as we
recorded a $6 million of valuation
allowance release and a $2 million
tax reserve release in 2018 compared to a $37 million income tax benefit in connection with
U.S. tax reform and valuation allowance releases in 2017.
- Reported net income and net income per diluted share were
$29 million and $0.21, respectively, compared to reported net
loss and net loss per diluted share of $4
million and $0.03,
respectively, driven by growth in earnings, reduced interest
charges and reduced acquisition and integration
expenses.
- Reported EBITDA was $296 million
compared to $241 million. Adjusted
EBITDA increased 6% to $312 million
due to the growth in earnings, partially offset by inflation
prevalent in 2018.
- Net cash provided by operating activities of $244 million less $130
million of capital expenditures resulted in reported free
cash flow of $114 million and
adjusted free cash flow of $150
million, representing a $72
million or a 91% improvement from the comparable prior
period due to increased earnings and $25
million of working capital benefits.
2019 FULL YEAR CONTINUING OPERATIONS REVENUE AND FREE CASH
FLOW OUTLOOK
Cott is targeting full year 2019 revenue from continuing
operations in excess of $2.4 billion
and adjusted free cash flow of over $150
million (when excluding acquisition, integration and other
one-time cash costs). The targets incorporate the sale of the soft
drink concentrate production business and RCI international
division which occurred on February 8,
2019 and represented over $80
million in annual revenue.
DECLARATION OF DIVIDEND
Cott's Board of Directors has declared a dividend of
$0.06 per share on common shares,
payable in cash on March 27, 2019 to
shareowners of record at the close of business on March 12, 2019.
SHARE REPURCHASE PROGRAM
Cott repurchased approximately 2 million shares at an average
price of $14.02 totaling
approximately $28 million during the
fourth quarter under its previously announced share repurchase
program.
During fiscal year 2018, the Company's Board of Directors
approved a 12-month repurchase program which commenced on
May 7, 2018 and was capped at
$50 million. Upon repurchasing
2,973,282 common shares, the Company's Board of Directors approved
a new 12-month share repurchase program of up to $50 million which commenced on December 14, 2018 and replaced the then-existing
program which was scheduled to expire on May
6, 2019. Cott intends to manage this program
opportunistically and make repurchases from time to time when
management believes market conditions are favorable.
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.
FOURTH QUARTER AND FISCAL YEAR 2018 RESULTS CONFERENCE
CALL
Cott Corporation will host a conference call today, February 22, 2019, at 10:00 a.m. ET, to discuss fourth quarter and full
year results, which can be accessed as follows:
North America:
(888)231-8191
International: (647)427-7450
Conference ID: 6344129
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 and the change in average costs of coffee 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, 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 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 2019 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; 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 our
acquisitions because of integration difficulties and other
challenges; our exposure to intangible asset risk; currency
fluctuations that adversely affect the exchange between the U.S.
dollar and the British pound sterling, the Euro, the Canadian
dollar and other currencies, and the exchange between the British
pound sterling and the Euro; our ability to maintain favorable
arrangements and relationships with our suppliers; our ability to
meet our obligations under our debt agreements, and risks of
further increases to our indebtedness; our ability to maintain
compliance with the covenants and conditions under our debt
agreements; fluctuations in interest rates, which could increase
our borrowing costs; the incurrence of substantial indebtedness to
finance our recent acquisitions; the impact on our financial
results from uncertainty in the financial markets and other adverse
changes in general economic conditions; credit rating changes; 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; 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 Year Ended
|
|
December
29,
2018
|
|
December
30,
2017
|
|
December
29,
2018
|
|
December
30,
2017
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
599.2
|
|
$
|
571.3
|
|
$
|
2,372.9
|
|
$
|
2,269.7
|
Cost of
sales
|
309.0
|
|
292.3
|
|
1,197.3
|
|
1,142.0
|
Gross
profit
|
290.2
|
|
279.0
|
|
1,175.6
|
|
1,127.7
|
Selling, general and
administrative expenses
|
275.9
|
|
265.0
|
|
1,092.1
|
|
1,043.2
|
Loss on disposal of
property, plant and equipment, net
|
5.6
|
|
5.4
|
|
9.4
|
|
10.2
|
Acquisition and
integration expenses
|
4.5
|
|
8.7
|
|
15.3
|
|
30.4
|
Operating income
(loss)
|
4.2
|
|
(0.1)
|
|
58.8
|
|
43.9
|
Other income,
net
|
(9.9)
|
|
(2.0)
|
|
(42.9)
|
|
(8.0)
|
Interest expense,
net
|
19.3
|
|
23.4
|
|
77.6
|
|
85.5
|
(Loss) income from
continuing operations before income taxes
|
(5.2)
|
|
(21.5)
|
|
24.1
|
|
(33.6)
|
Income tax
benefit
|
(8.8)
|
|
(31.0)
|
|
(4.8)
|
|
(30.0)
|
Net income (loss)
from continuing operations
|
$
|
3.6
|
|
$
|
9.5
|
|
$
|
28.9
|
|
$
|
(3.6)
|
Net (loss) income
from discontinued operations, net of income taxes
|
(2.9)
|
|
9.7
|
|
354.6
|
|
10.7
|
Net
income
|
$
|
0.7
|
|
$
|
19.2
|
|
$
|
383.5
|
|
$
|
7.1
|
Less: Net income
attributable to non-controlling interests - discontinued
operations
|
—
|
|
2.1
|
|
0.6
|
|
8.5
|
Net income (loss)
attributable to Cott Corporation
|
$
|
0.7
|
|
$
|
17.1
|
|
$
|
382.9
|
|
$
|
(1.4)
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share attributable to Cott Corporation
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.03
|
|
$
|
0.07
|
|
$
|
0.21
|
|
$
|
(0.03)
|
Discontinued
operations
|
$
|
(0.02)
|
|
$
|
0.05
|
|
$
|
2.54
|
|
$
|
0.02
|
Net income
(loss)
|
$
|
0.01
|
|
$
|
0.12
|
|
$
|
2.75
|
|
$
|
(0.01)
|
Diluted:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.03
|
|
$
|
0.07
|
|
$
|
0.21
|
|
$
|
(0.03)
|
Discontinued
operations
|
$
|
(0.02)
|
|
$
|
0.05
|
|
$
|
2.50
|
|
$
|
0.02
|
Net income
(loss)
|
$
|
0.01
|
|
$
|
0.12
|
|
$
|
2.71
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
137,879
|
|
139,371
|
|
139,097
|
|
139,078
|
Diluted
|
140,065
|
|
142,265
|
|
141,436
|
|
139,078
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.06
|
|
$
|
0.06
|
|
$
|
0.24
|
|
$
|
0.24
|
COTT
CORPORATION
|
|
|
EXHIBIT
2
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
(in millions of
U.S. dollars, except share amounts, U.S. GAAP)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
December 29,
2018
|
|
December 30,
2017
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
170.8
|
|
$
|
91.9
|
Accounts receivable,
net of allowance of $9.6 ($7.8 as of December 30, 2017)
|
308.3
|
|
285.0
|
Inventories
|
129.6
|
|
127.6
|
Prepaid expenses and
other current assets
|
27.2
|
|
20.7
|
Current assets of
discontinued operations
|
—
|
|
408.7
|
Total current
assets
|
635.9
|
|
933.9
|
Property, plant and
equipment, net
|
624.7
|
|
584.2
|
Goodwill
|
1,143.9
|
|
1,104.7
|
Intangible assets,
net
|
739.2
|
|
751.1
|
Deferred tax
assets
|
0.1
|
|
2.3
|
Other long-term
assets, net
|
31.7
|
|
39.4
|
Long-term assets of
discontinued operations
|
—
|
|
677.5
|
Total
assets
|
$
|
3,175.5
|
|
$
|
4,093.1
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
borrowings
|
89.0
|
|
—
|
Short-term borrowings
required to be repaid or extinguished as part of
divestiture
|
—
|
|
220.3
|
Current maturities of
long-term debt
|
3.0
|
|
5.1
|
Accounts payable and
accrued liabilities
|
469.0
|
|
412.9
|
Current liabilities
of discontinued operations
|
—
|
|
295.1
|
Total current
liabilities
|
561.0
|
|
933.4
|
Long-term
debt
|
1,250.2
|
|
1,542.6
|
Debt required to be
repaid or extinguished as part of divestiture
|
—
|
|
519.0
|
Deferred tax
liabilities
|
124.3
|
|
98.4
|
Other long-term
liabilities
|
69.6
|
|
68.2
|
Long-term liabilities
of discontinued operations
|
—
|
|
45.8
|
Total
liabilities
|
2,005.1
|
|
3,207.4
|
Equity
|
|
|
|
Common shares, no par
value - 136,195,108 shares issued (December 30, 2017 - 139,488,805
shares
issued)
|
899.4
|
|
917.1
|
Additional
paid-in-capital
|
73.9
|
|
69.1
|
Retained earnings
(accumulated deficit)
|
298.8
|
|
(12.2)
|
Accumulated other
comprehensive loss
|
(101.7)
|
|
(94.4)
|
Total Cott
Corporation equity
|
1,170.4
|
|
879.6
|
Non-controlling
interests
|
—
|
|
6.1
|
Total
equity
|
1,170.4
|
|
885.7
|
Total liabilities
and equity
|
$
|
3,175.5
|
|
$
|
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 Year
Ended
|
|
December
29,
2018
|
|
December 30,
2017
|
|
December
29,
2018
|
|
December
30,
2017
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities of continuing operations:
|
|
|
|
|
|
|
|
Net income
|
$
|
0.7
|
|
$
|
19.2
|
|
$
|
383.5
|
|
$
|
7.1
|
Net (loss) income
from discontinued operations, net of income taxes
|
(2.9)
|
|
9.7
|
|
354.6
|
|
10.7
|
Net income (loss)
from continuing operations
|
$
|
3.6
|
|
$
|
9.5
|
|
$
|
28.9
|
|
$
|
(3.6)
|
Adjustments to
reconcile net income (loss) from continuing operations to cash
flows from operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
48.9
|
|
46.8
|
|
194.6
|
|
188.6
|
Amortization of
financing fees
|
0.9
|
|
0.5
|
|
3.5
|
|
1.9
|
Amortization of
senior notes premium
|
—
|
|
(1.2)
|
|
(0.4)
|
|
(5.1)
|
Share-based
compensation expense
|
2.7
|
|
6.4
|
|
17.3
|
|
17.5
|
Benefit for deferred
income taxes
|
(9.5)
|
|
(35.3)
|
|
(6.7)
|
|
(33.9)
|
Commodity hedging
loss (gain), net
|
—
|
|
1.6
|
|
0.3
|
|
(0.3)
|
Gain on
extinguishment of long-term debt
|
—
|
|
—
|
|
(7.1)
|
|
(1.5)
|
Gain on sale of
business
|
—
|
|
—
|
|
(6.0)
|
|
—
|
Loss on disposal of
property, plant and equipment, net
|
5.6
|
|
5.4
|
|
9.4
|
|
10.2
|
Other non-cash
items
|
(1.6)
|
|
15.1
|
|
(2.9)
|
|
1.9
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
30.2
|
|
28.7
|
|
(10.8)
|
|
(8.0)
|
Inventories
|
8.9
|
|
12.5
|
|
(0.5)
|
|
(2.0)
|
Prepaid expenses and
other current assets
|
3.4
|
|
1.2
|
|
(4.0)
|
|
0.9
|
Other
assets
|
(1.9)
|
|
(2.7)
|
|
(0.5)
|
|
2.1
|
Accounts payable and
accrued liabilities and other liabilities
|
7.0
|
|
(51.2)
|
|
29.2
|
|
7.3
|
Net cash provided by
operating activities from continuing operations
|
98.2
|
|
37.3
|
|
244.3
|
|
176.0
|
Cash flows from
investing activities of continuing operations:
|
|
|
|
|
|
|
|
Acquisitions, net of
cash received
|
(97.0)
|
|
(2.1)
|
|
(164.0)
|
|
(35.5)
|
Additions to
property, plant and equipment
|
(35.8)
|
|
(24.2)
|
|
(130.8)
|
|
(121.3)
|
Additions to
intangible assets
|
(6.3)
|
|
0.4
|
|
(13.2)
|
|
(5.6)
|
Proceeds from sale of
property, plant and equipment and sale-leaseback
|
0.4
|
|
1.8
|
|
4.1
|
|
7.8
|
Proceeds from sale of
business, net of cash sold
|
—
|
|
—
|
|
12.8
|
|
—
|
Proceeds from sale of
equity securities
|
—
|
|
—
|
|
7.9
|
|
—
|
Other investing
activities
|
0.1
|
|
0.1
|
|
0.5
|
|
1.0
|
Net cash used in
investing activities from continuing operations
|
(138.6)
|
|
(24.0)
|
|
(282.7)
|
|
(153.6)
|
Cash flows from
financing activities of continuing operations:
|
|
|
|
|
|
|
|
Payments of long-term
debt
|
(1.0)
|
|
0.4
|
|
(264.5)
|
|
(101.5)
|
Issuance of long-term
debt
|
2.7
|
|
—
|
|
2.7
|
|
750.0
|
Borrowings under
ABL
|
97.0
|
|
—
|
|
98.4
|
|
—
|
Payments under
ABL
|
(16.0)
|
|
—
|
|
(17.4)
|
|
—
|
Premiums and costs
paid upon extinguishment of long-term debt
|
—
|
|
—
|
|
(12.5)
|
|
(7.7)
|
Issuance of common
shares
|
0.4
|
|
0.6
|
|
6.4
|
|
3.5
|
Common shares
repurchased and canceled
|
(28.8)
|
|
(1.9)
|
|
(74.9)
|
|
(3.8)
|
Financing
fees
|
—
|
|
—
|
|
(1.5)
|
|
(11.1)
|
Dividends paid to
common and preferred shareholders
|
(8.3)
|
|
(8.3)
|
|
(33.4)
|
|
(33.4)
|
Payment of contingent
consideration for acquisitions
|
—
|
|
—
|
|
(2.8)
|
|
—
|
Other financing
activities
|
(1.1)
|
|
—
|
|
2.9
|
|
0.5
|
Net cash provided by
(used in) financing activities from continuing
operations
|
44.9
|
|
(9.2)
|
|
(296.6)
|
|
596.5
|
Cash flows from
discontinued operations:
|
|
|
|
|
|
|
|
Operating activities
of discontinued operations
|
(4.0)
|
|
46.6
|
|
(97.6)
|
|
102.7
|
Investing activities
of discontinued operations
|
(3.1)
|
|
(8.0)
|
|
1,225.5
|
|
(44.7)
|
Financing activities
of discontinued operations
|
—
|
|
(32.9)
|
|
(769.7)
|
|
(643.4)
|
Net cash (used in)
provided by discontinued operations
|
(7.1)
|
|
5.7
|
|
358.2
|
|
(585.4)
|
Effect of exchange
rate changes on cash
|
(2.3)
|
|
(0.1)
|
|
(10.3)
|
|
6.3
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
(4.9)
|
|
9.7
|
|
12.9
|
|
39.8
|
Cash and cash
equivalents and restricted cash, beginning of year
|
175.7
|
|
148.2
|
|
157.9
|
|
118.1
|
Cash and cash
equivalents and restricted cash, end of year
|
170.8
|
|
157.9
|
|
170.8
|
|
157.9
|
Cash and cash
equivalents and restricted cash of discontinued operations, end of
year
|
—
|
|
66.0
|
|
—
|
|
66.0
|
Cash and cash
equivalents and restricted cash from continuing operations, end of
year
|
$
|
170.8
|
|
$
|
91.9
|
|
$
|
170.8
|
|
$
|
91.9
|
COTT
ORPORATION
|
|
EXHIBIT
4
|
SEGMENT
INFORMATION
|
|
|
(in millions of
U.S. dollars, U.S. GAAP)
|
|
|
Unaudited
|
|
|
|
|
|
|
For the Three Months Ended December 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
|
|
$
|
235.3
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
235.3
|
Coffee and tea
services
|
|
49.6
|
|
|
|
|
1.0
|
|
(1.9)
|
|
161.6
|
Retail
|
|
55.8
|
|
|
—
|
|
22.4
|
|
(0.1)
|
|
78.1
|
Other
|
|
51.8
|
|
|
42.9
|
|
29.4
|
|
0.1
|
|
124.2
|
Total
|
|
$
|
392.5
|
|
$
|
155.8
|
|
$
|
52.8
|
|
$
|
(1.9)
|
|
$
|
599.2
|
Gross
Profit
|
|
$
|
239.6
|
|
$
|
40.5
|
|
$
|
10.1
|
|
$
|
—
|
|
$
|
290.2
|
Gross Margin
%
|
|
61.0%
|
|
|
26.0%
|
|
19.1%
|
|
—
|
|
48.4%
|
Operating income
(loss)
|
|
$
|
7.1
|
|
$
|
3.8
|
|
$
|
(6.7)
|
|
$
|
—
|
|
$
|
4.2
|
Depreciation and
Amortization
|
|
$
|
41.1
|
|
$
|
5.7
|
|
$
|
2.1
|
|
$
|
—
|
|
$
|
48.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 30, 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
|
|
$
|
224.9
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
224.9
|
Coffee and tea
services
|
|
49.3
|
|
|
132.1
|
|
0.6
|
|
—
|
|
182.0
|
Retail
|
|
51.2
|
|
|
—
|
|
|
31.4
|
|
—
|
|
82.6
|
Other
|
|
41.4
|
|
|
29.9
|
|
|
10.5
|
|
—
|
|
81.8
|
Total
|
|
$
|
366.8
|
|
$
|
162.0
|
|
$
|
42.5
|
|
$
|
—
|
|
$
|
571.3
|
Gross Profit
(a)
|
|
$
|
229.0
|
|
$
|
43.5
|
|
$
|
6.5
|
|
$
|
—
|
|
$
|
279.0
|
Gross Margin
%
|
|
62.4%
|
|
|
26.9%
|
|
15.3%
|
|
—
|
|
48.8%
|
Operating income
(loss)
|
|
$
|
12.1
|
|
$
|
2.8
|
|
$
|
(15.0)
|
|
$
|
—
|
|
$
|
(0.1)
|
Depreciation and
Amortization
|
|
$
|
39.2
|
|
$
|
5.5
|
|
$
|
2.1
|
|
$
|
—
|
|
$
|
46.8
|
|
|
|
|
|
For the Year Ended December 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
|
|
$
|
994.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
994.8
|
|
Coffee and tea
services
|
|
189.4
|
|
|
461.9
|
|
3.5
|
|
|
(5.8)
|
|
|
649.0
|
|
Retail
|
|
232.9
|
|
|
—
|
|
71.5
|
|
|
(0.4)
|
|
|
304.0
|
|
Other
|
|
182.8
|
|
|
125.7
|
|
116.6
|
|
|
—
|
|
|
425.1
|
|
Total
|
|
$
|
1,599.9
|
|
$
|
587.6
|
|
$
|
191.6
|
|
$
|
(6.2)
|
|
$
|
2,372.9
|
|
Gross Profit
(a)
|
|
$
|
992.4
|
|
$
|
152.0
|
|
$
|
31.2
|
|
$
|
—
|
|
$
|
1,175.6
|
|
Gross Margin
%
|
|
62.0%
|
|
|
25.9%
|
|
16.3%
|
|
|
—
|
|
|
49.5%
|
|
Operating income
(loss)
|
|
$
|
84.7
|
|
$
|
16.1
|
|
$
|
(42.0)
|
|
$
|
—
|
|
$
|
58.8
|
|
Depreciation and
Amortization
|
|
$
|
163.9
|
|
$
|
22.9
|
|
$
|
7.8
|
|
$
|
—
|
|
$
|
194.6
|
|
|
|
|
For the Year Ended December 30, 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
|
|
$
|
940.4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
940.4
|
|
|
|
|
|
Coffee and tea
services
|
|
184.2
|
|
501.7
|
|
2.6
|
|
—
|
|
688.5
|
|
|
|
|
|
Retail
|
|
216.9
|
|
—
|
|
65.3
|
|
—
|
|
282.2
|
|
|
|
|
|
Other
|
|
160.2
|
|
100.5
|
|
97.9
|
|
—
|
|
358.6
|
|
|
|
|
|
Total
|
|
$
|
1,501.7
|
|
$
|
602.2
|
|
$
|
165.8
|
|
$
|
—
|
|
$
|
2,269.7
|
|
|
|
|
|
Gross Profit
(a)
|
|
$
|
939.9
|
|
$
|
161.4
|
|
$
|
26.4
|
|
$
|
—
|
|
$
|
1,127.7
|
|
|
|
|
|
Gross Margin
%
|
|
62.6%
|
|
26.8%
|
|
15.9%
|
|
—
|
|
49.7%
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
74.0
|
|
$
|
15.9
|
|
$
|
(46.0)
|
|
$
|
—
|
|
$
|
43.9
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
|
158.3
|
|
$
|
22.7
|
|
$
|
7.6
|
|
$
|
—
|
|
$
|
188.6
|
|
|
|
|
|
(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 December 29, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Route
Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Eliminations
|
|
Cott
(a)
|
Change in
revenue
|
$
|
25.7
|
|
$
|
(6.2)
|
|
$
|
10.3
|
|
$
|
(1.9)
|
|
$
|
27.9
|
Impact of foreign
exchange (b)
|
$
|
4.5
|
|
$
|
—
|
|
$
|
1.2
|
|
$
|
—
|
|
$
|
5.7
|
Change excluding
foreign exchange
|
$
|
30.2
|
|
$
|
(6.2)
|
|
$
|
11.5
|
|
$
|
(1.9)
|
|
$
|
33.6
|
Percentage change in
revenue
|
|
7.0%
|
|
|
(3.8)%
|
|
|
24.2%
|
|
|
100.0%
|
|
|
4.9%
|
Percentage change in
revenue excluding foreign exchange
|
|
8.2%
|
|
|
(3.8)%
|
|
|
27.1%
|
|
|
100.0%
|
|
|
5.9%
|
(in millions of
U.S. dollars, except percentage amounts)
|
For the Year Ended December 29, 2018
|
|
Route
Based
Services
|
|
Coffee, Tea
and
Extract Solutions
|
|
All
Other
|
|
Eliminations
|
|
Cott
(a)
|
Change in
revenue
|
$
|
98.2
|
|
$
|
(14.6)
|
|
$
|
25.8
|
|
$
|
(6.2)
|
|
$
|
103.2
|
Impact of foreign
exchange (b)
|
$
|
(9.5)
|
|
$
|
—
|
|
$
|
(2.3)
|
|
$
|
—
|
|
$
|
(11.8)
|
Change excluding
foreign exchange
|
$
|
88.7
|
|
$
|
(14.6)
|
|
$
|
23.5
|
|
$
|
(6.2)
|
|
$
|
91.4
|
Percentage change in
revenue
|
6.5%
|
|
(2.4)%
|
|
15.6%
|
|
100.0%
|
|
4.5%
|
Percentage change in
revenue excluding foreign exchange
|
5.9%
|
|
(2.4)%
|
|
14.2%
|
|
100.0%
|
|
4.0%
|
Impact of fewer
trading days (c)
|
$
|
1.3
|
|
$
|
4.9
|
|
$
|
0.2
|
|
$
|
—
|
|
$
|
6.4
|
Change excluding
foreign exchange and impact of fewer trading days
|
$
|
90.0
|
|
$
|
(9.7)
|
|
$
|
23.7
|
|
$
|
(6.2)
|
|
$
|
97.8
|
Percentage change in
revenue excluding foreign exchange and impact of fewer trading
days
|
6.0%
|
|
(1.6)%
|
|
14.3%
|
|
100.0%
|
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
(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) Our Eden business
had two fewer trading days, our S&D business had three fewer
trading days, and our Aimia business had one fewer trading day for
the year ended December 29, 2018 as compared to the prior
year.
|
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 Year Ended
|
|
December
29,
2018
|
|
December
30,
2017
|
|
December
29,
2018
|
|
December
30,
2017
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
$
|
3.6
|
|
$
|
9.5
|
|
$
|
28.9
|
|
$
|
(3.6)
|
Interest expense,
net
|
19.3
|
|
23.4
|
|
77.6
|
|
85.5
|
Income tax
benefit
|
(8.8)
|
|
(31.0)
|
|
(4.8)
|
|
(30.0)
|
Depreciation and
amortization
|
48.9
|
|
46.8
|
|
194.6
|
|
188.6
|
EBITDA
|
$
|
63.0
|
|
$
|
48.7
|
|
$
|
296.3
|
|
$
|
240.5
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs (a), (b), (c)
|
4.5
|
|
8.7
|
|
15.3
|
|
30.4
|
Share-based
compensation costs (d)
|
2.2
|
|
5.3
|
|
18.4
|
|
14.0
|
Commodity hedging
loss (gain), net (e)
|
—
|
|
1.6
|
|
0.3
|
|
(0.3)
|
Foreign exchange and
other losses (gains), net (f)
|
0.1
|
|
(0.9)
|
|
(10.7)
|
|
(2.0)
|
Loss on disposal of
property, plant and equipment, net (g)
|
5.6
|
|
5.4
|
|
9.4
|
|
11.1
|
Gain on
extinguishment of long-term debt (h)
|
—
|
|
—
|
|
(7.1)
|
|
(1.5)
|
Gain on sale
(i)
|
—
|
|
—
|
|
(6.0)
|
|
—
|
Other adjustments,
net (b), (j)
|
(3.5)
|
|
1.6
|
|
(3.9)
|
|
3.4
|
Adjusted
EBITDA
|
$
|
71.9
|
|
$
|
70.4
|
|
$
|
312.0
|
|
$
|
295.6
|
(a) Includes an
increase of $0.5 million and a reduction of $1.1 million of
share-based compensation costs for the three months and year ended
December 29, 2018, respectively, related to awards granted in
connection with the acquisition of our S&D and Eden businesses
and an increase of $1.1 million and $3.5 million of share-based
compensation costs for the three months and year ended December 30,
2017, respectively, related to awards granted in connection with
the acquisition of our S&D and Eden businesses.
|
|
(b) With the adoption
of Accounting Standards Update 2017-07, "Compensation-Retirement
Benefits (Topic 715)," the gain on pension curtailment of $4.5
million that was previously recorded to acquisition and integration
costs was reclassified to other adjustments, net for the year ended
December 30, 2017. This reclassification had no effect on Adjusted
EBITDA for the year ended December 30, 2017.
|
|
|
|
For the Three Months Ended
|
|
For the Year Ended
|
|
Location in
Consolidated Statements of Operations
|
|
December
29,
2018
|
|
December
30,
2017
|
|
December
29,
2018
|
|
December
30,
2017
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(c) Acquisition and
integration costs
|
Acquisition and
integration expenses
|
|
$
|
4.5
|
|
$
|
8.7
|
|
$
|
15.3
|
|
$
|
30.4
|
(d) Share-based
compensation costs
|
Selling, general and
administrative expenses
|
|
2.2
|
|
5.3
|
|
18.4
|
|
14.0
|
(e) Commodity hedging
loss (gain), net
|
Cost of
sales
|
|
—
|
|
1.6
|
|
0.3
|
|
(0.3)
|
(f) Foreign exchange
and other losses (gains), net
|
Other income,
net
|
|
0.1
|
|
(0.9)
|
|
(10.7)
|
|
(2.0)
|
(g) Loss on disposal
of property, plant and equipment, net
|
Loss on disposal of
property, plant and equipment, net
|
|
5.6
|
|
5.4
|
|
9.4
|
|
11.1
|
(h) Gain on
extinguishment of long-term debt
|
Other income,
net
|
|
—
|
|
—
|
|
(7.1)
|
|
(1.5)
|
(i) Gain on
sale
|
Other income,
net
|
|
—
|
|
—
|
|
(6.0)
|
|
—
|
(j) Other
adjustments, net
|
Other income,
net
|
|
(8.3)
|
|
—
|
|
(14.9)
|
|
(3.0)
|
|
Selling, general and
administrative expenses
|
|
3.9
|
|
1.6
|
|
8.8
|
|
6.4
|
|
Cost of
sales
|
|
0.9
|
|
—
|
|
2.2
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
December 29,
2018
|
|
December 30,
2017
|
|
|
|
|
Net cash provided
by operating activities from continuing operations
|
$
|
98.2
|
|
$
|
37.3
|
Less: Additions
to property, plant, and equipment
|
(35.8)
|
|
(24.2)
|
Free Cash
Flow
|
$
|
62.4
|
|
$
|
13.1
|
|
|
|
|
Plus:
|
|
|
|
Acquisition and
integration cash costs
|
4.8
|
|
6.7
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
(2.6)
|
|
—
|
Adjusted Free Cash
Flow
|
$
|
64.6
|
|
$
|
19.8
|
|
|
|
|
|
For the Year Ended
|
|
December 29,
2018
|
|
December 30,
2017
|
|
|
|
|
Net cash provided
by operating activities from continuing operations
|
$
|
244.3
|
|
$
|
176.0
|
Less: Additions
to property, plant, and equipment
|
(130.8)
|
|
(121.3)
|
Free Cash
Flow
|
$
|
113.5
|
|
$
|
54.7
|
|
|
|
|
Plus:
|
|
|
|
Acquisition and
integration cash costs
|
17.3
|
|
23.6
|
Working capital
adjustment - Refresco concentrate supply agreement (a)
|
11.1
|
|
—
|
Additional cash
proceeds from Primo operating agreement (b)
|
7.9
|
|
—
|
Adjusted Free Cash
Flow
|
$
|
149.8
|
|
$
|
78.3
|
|
|
|
|
(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
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
|
|
December 29,
2018
|
|
December 30,
2017
|
|
December 29,
2018
|
|
December 30,
2017
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
599.2
|
|
$
|
571.3
|
|
$
|
155.8
|
|
$
|
162.0
|
Change in
revenue
|
$
|
27.9
|
|
|
|
$
|
(6.2)
|
|
|
Percentage change
in revenue
|
4.9%
|
|
|
|
(3.8)%
|
|
|
Impact of foreign
exchange (b)
|
$
|
5.7
|
|
|
|
$
|
—
|
|
|
Impact of change in
average cost of green coffee (c)
|
$
|
5.9
|
|
|
|
$
|
5.9
|
|
|
Change excluding
foreign exchange and impact of change in average cost of green
coffee
|
$
|
39.5
|
|
|
|
$
|
(0.3)
|
|
|
Percentage change
in revenue excluding foreign exchange and
impact of change in average cost of green coffee
|
6.9%
|
|
|
|
(0.2)%
|
|
|
|
|
|
|
|
|
|
|
|
Cott (a)
|
|
Coffee, Tea and
Extract Solutions
|
|
For the Year Ended
|
|
For the Year Ended
|
|
December 29,
2018
|
|
December 30,
2017
|
|
December 29,
2018
|
|
December 30,
2017
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
|
2,372.9
|
|
$
|
2,269.7
|
|
$
|
587.6
|
|
$
|
602.2
|
Change in
revenue
|
$
|
103.2
|
|
|
|
$
|
(14.6)
|
|
|
Percentage change
in revenue
|
4.5%
|
|
|
|
(2.4)%
|
|
|
Impact of foreign
exchange (b)
|
$
|
(11.8)
|
|
|
|
$
|
—
|
|
|
Impact of change in
average cost of green coffee (c)
|
$
|
15.2
|
|
|
|
$
|
15.2
|
|
|
Impact of fewer
trading days (d)
|
$
|
6.4
|
|
|
|
$
|
4.9
|
|
|
Change excluding
foreign exchange, impact of change in average
cost of green coffee and impact of fewer trading days
|
$
|
113.0
|
|
|
|
$
|
5.5
|
|
|
Percentage change
in revenue excluding foreign exchange,
impact of change in average cost of green coffee and
impact
of fewer trading days
|
5.0%
|
|
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
(a) Cott includes the
following reporting segments: Route Based Services, Coffee, Tea and
Extract Solutions and All Other.
|
(b) Impact of foreign
exchange is the difference between the current period revenue
translated utilizing the current period average foreign exchange
rates less the current period revenue translated utilizing the
prior period average foreign exchange rates.
|
(c) Impact of change
in average cost of green coffee represents the difference between
the average cost per pound of green coffee in the current period
compared to the average cost per pound of green coffee in the prior
period multiplied by the pounds of coffee sold in the current
period.
|
(d) Our Eden business
had two fewer trading days, our S&D business had three fewer
trading days, and our Aimia business had one fewer trading day for
the year ended December 29, 2018 as compared to the prior
year.
|
Media Contact:
Jarrod
Langhans
Investor Relations
Tel: (813)-313-1732
Investorrelations@cott.com