- Reports strong year-over-year growth in Revenue, Net Income,
Adjusted EBITDA, Margins and Adjusted Free Cash Flow
- Completes previously announced transaction to sell
significant portion of its International businesses for
$575 million
- Successfully executes leadership transition and welcomes new
CEO Robbert Rietbroek
- Issues first quarter and full year 2024 Revenue, Adjusted
EBITDA and Free Cash Flow guidance*
- Declares quarterly dividend of $0.09 per
common share, a 13% increase over last year
TAMPA,
Fla., Feb. 22, 2024 /CNW/ - Primo Water
Corporation (NYSE: PRMW) (TSX: PRMW) (the "Company" or "Primo
Water"), a leading provider of sustainable drinking water solutions
in North America, today announced
its results for the full year and fourth quarter ended December 30, 2023.
"I am pleased with our performance, as our associates provided
excellent service to our customers and strong financial results for
our shareholders. Our full-year 2023 results exceeded the
midpoint of our guidance for revenue, adjusted EBITDA and adjusted
free cash flow for the combined continuing and discontinued
operations," said Robbert Rietbroek, Chief Executive Officer.
Mr. Rietbroek continued, "Given the strength of our businesses,
we expect our first quarter 2024 outlook from continuing operations
for revenue to be between $435
million and $445 million and
adjusted EBITDA to be between $85
million and $91 million. Full
year 2024 outlook from continuing operations for revenue is
forecasted to be between $1.84
billion and $1.88 billion and
Adjusted EBITDA to be between $402
million and $422 million.
Full-year 2024 Adjusted Free Cash Flow from continuing operations
is forecasted to be between $170
million and $180 million.
These forecasts reflect the successful execution of the previously
announced transaction to sell a significant portion of our
international businesses. We intend to use the gross proceeds
of $575 million from the sale to
pursue growth, both organically and through tuck-in M&A, reduce
leverage, and return capital to shareholders via share repurchases
and dividends. As we move through 2024, we will sell the
remainder of the international businesses, further improving our
balance sheet and North American focus as we execute our vision and
effectively deploy capital."
"As the new CEO of Primo Water, I
am excited to lead this premier, North American-focused, pure-play
water company. Since joining in January, I have been engaging
with our stakeholders and learning more about our company's assets,
resources and practices. We have a strong platform for growth
with a unique value proposition with our bulk offerings in the
large and growing water market, which gives me confidence in our
future," said Mr. Rietbroek.
|
*Please
refer to the paragraph titled "Non-GAAP Measures" for the
definitions of non-GAAP financial measures including "Adjusted
EBITDA," "Adjusted Free Cash Flow" and certain other non-GAAP
financial measures included in this press release. Primo
Water provides guidance for Adjusted EBITDA and Adjusted Free Cash
Flow on a non-GAAP basis as we cannot predict certain elements
which are included in reported GAAP results, including
restructuring costs and restructuring-related impairment charges,
acquisition/divestiture related costs, gains or losses on the sale
of businesses or other assets, and the income tax effects of these
items and/or other income tax-related events. These items could
have a significant impact on the Company's future GAAP financial
results. For more information, please see the paragraph titled
"Non-GAAP Measures" in this press release.
|
FISCAL 2023 HIGHLIGHTS - CONTINUING OPERATIONS
- Revenue from continuing operations increased 5% to $1.8 billion compared to $1.7 billion driven by revenue growth of 8% in
Water Direct / Water Exchange and 18% in Water Refill / Water
Filtration, offset primarily by the exit from the single-use retail
bottled water business in North
America and the exit from our Russia business.
- Gross margin from continuing operations increased 400 bps to
64.2% compared to 60.2%.
- Reported net income from continuing operations and reported net
income per diluted share were $64
million and $0.40,
respectively, compared to reported net income from continuing
operations and net income per diluted share of $59 million and $0.36, respectively. Adjusted net income from
continuing operations and adjusted net income per diluted share
were $100 million and $0.62, respectively, compared to $87 million and $0.54, respectively.
- Adjusted EBITDA from continuing operations increased 11% to
$381 million and Adjusted EBITDA
margin increased 120 bps to a record 21.5%.
(Unless stated otherwise, all fourth quarter 2023
comparisons are relative to the fourth quarter of 2022 and all
fiscal year 2023 comparisons are relative to fiscal year 2022; all
information is in U.S. dollars and, unless stated otherwise, is on
a continuing operations basis. Non-GAAP reconciliations presented
on the exhibits to this press release.
|
For the Fiscal Year
Ended
|
|
(USD $M unless
otherwise noted)
|
December
30, 2023
|
|
December
31, 2022
|
|
Y/Y
Change
|
|
Revenue, net
|
$ 1,771.8
|
|
$ 1,693.2
|
|
5 %
|
|
Net income from
continuing operations
|
$
63.8
|
|
$
58.7
|
|
$
5.1
|
|
Net income from
continuing operations
per diluted share
|
$
0.40
|
|
$
0.36
|
|
$
0.04
|
|
Adjusted net income
from continuing
operations
|
$
99.8
|
|
$
86.8
|
|
$
13.0
|
|
Adjusted net income
from continuing
operations per diluted share
|
$
0.62
|
|
$
0.54
|
|
$
0.08
|
|
Adjusted
EBITDA
|
$
380.7
|
|
$
343.8
|
|
11 %
|
|
Adjusted EBITDA margin
%
|
21.5 %
|
|
20.3 %
|
|
120 bps
|
OUTLOOK
Primo Water is targeting the
following results from continuing operations for the first quarter
and full-year 2024:
|
Q1 2024
Range
|
FY 2024
Range
|
|
($ in
millions)
|
Low
|
High
|
Low
|
High
|
|
Revenue
|
$435
|
$445
|
$1,840
|
$1,880
|
|
Adjusted
EBITDA
|
$85
|
$91
|
$402
|
$422
|
|
Cash Taxes
|
|
|
$30
|
$40
|
|
Cash
Interest
|
|
|
$30
|
$50
|
|
Cap-Ex
|
|
|
~ 7% of Revenue +
$22.5M Strategic
Investment
|
|
Adj. Free Cash
Flow
|
|
|
$170
|
$180
|
FOURTH QUARTER 2023 RESULTS CONFERENCE CALL
Primo Water will host a
conference call, to be simultaneously webcast, on Thursday, February 22, 2024, at 10:00 a.m. Eastern Time. A question-and-answer
session will follow management's presentation. To participate,
please call the following numbers:
North America: (888)
664-6392
International: (416) 764-8659
Conference ID: 60390249
This is a live, listen-only dial-in telephone line.
A slide presentation (including certain additional
non-GAAP comparative measures for 2023, 2022 and 2021 on a
continuing operations basis) and live audio webcast
will be available through Primo
Water's website at https://www.primowatercorp.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.
FISCAL YEAR PERFORMANCE - CONTINUING OPERATIONS
- Revenue increased 5% to $1,772
million compared to $1,693
million driven by revenue growth of 8% in Water Direct /
Water Exchange and 18% in Water Refill / Water Filtration, due
primarily to pricing initiatives and increased demand for products
and services from residential and business customers. Revenue
growth by channel is tabulated below:
|
For the Fiscal Year
Ended
|
|
(USD $M unless
otherwise noted)
|
December
30, 2023
|
|
December
31, 2022
|
|
Change
|
|
%
Change
|
|
Revenue, net
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
$
1,345.3
|
|
$
1,250.2
|
|
$
95.1
|
|
8 %
|
|
Water Refill/Water
Filtration
|
226.9
|
|
192.0
|
|
$
34.9
|
|
18 %
|
|
Other Water
|
51.9
|
|
73.8
|
|
$
(21.9)
|
|
(30) %
|
|
Water
Dispensers
|
57.5
|
|
70.5
|
|
$
(13.0)
|
|
(18) %
|
|
Other
|
90.2
|
|
106.7
|
|
$
(16.5)
|
|
(15) %
|
|
Revenue, net as
reported
|
$
1,771.8
|
|
$
1,693.2
|
|
$
78.6
|
|
5 %
|
|
Foreign exchange
impact
|
2.4
|
|
—
|
|
2.4
|
|
n/a
|
|
Revenue excluding
foreign exchange
impact
|
$
1,774.2
|
|
$
1,693.2
|
|
$
81.0
|
|
5 %
|
- Gross profit increased 12% to $1,137
million compared to $1,019
million. Gross margin increased 400 bps to 64.2% compared to
60.2%, driven by pricing initiatives, increased demand and
operating efficiencies.
- SG&A expenses increased 10% to $976
million compared to $884
million. The increase was driven by higher selling and
operating costs including delivery commissions that supported
volume and revenue growth.
- Reported net income from continuing operations and net income
per diluted share were $64 million
and $0.40, respectively, compared to
reported net income from continuing operations and net income per
diluted share of $59 million and
$0.36, respectively. Adjusted net
income from continuing operations and adjusted net income per
diluted share were $100 million and
$0.62, respectively, compared to
$87 million and $0.54, respectively.
- Adjusted EBITDA increased 11% to $381
million compared to $344
million, driven primarily by pricing initiatives, customer
demand and operating efficiencies. Adjusted EBITDA margin was 21.5%
for the year, compared to 20.3%.
- Net cash provided by operating activities from continuing
operations of $289 million, less
$147 million of capital expenditures
and additions to intangible assets, resulted in $142 million of free cash flow, or $158 million of adjusted free cash flow
(adjusting for the items set forth on Exhibit 7), compared to
adjusted free cash flow of $85
million in the prior year.
FOURTH QUARTER PERFORMANCE - CONTINUING OPERATIONS
|
For the Three Months
Ended
|
|
(in millions of U.S.
dollars, except per share
amounts, percentages and bps)
|
December
30, 2023
|
|
December
31, 2022
|
|
Y/Y
Change
|
|
Revenue, net
|
$
438.7
|
|
$
405.1
|
|
8 %
|
|
Net income from
continuing operations
|
$
13.3
|
|
$
34.8
|
|
$
(21.5)
|
|
Net income from
continuing operations
per diluted share
|
$
0.08
|
|
$
0.22
|
|
$
(0.14)
|
|
Adjusted net income
from continuing
operations
|
$
18.6
|
|
$
20.6
|
|
$
(2.0)
|
|
Adjusted net income
from continuing
operations per diluted share
|
$
0.12
|
|
$
0.13
|
|
$
(0.01)
|
|
Adjusted
EBITDA
|
$
94.9
|
|
$
88.6
|
|
7 %
|
|
Adjusted EBITDA margin
%
|
21.6 %
|
|
21.9 %
|
|
-30 bps
|
- Revenue increased 8% to $439
million compared to $405
million in the prior quarter. The increase was driven by
revenue growth of 8% in Water Direct / Water Exchange and 15% in
Water Refill / Water Filtration, due primarily to pricing
initiatives and increased demand for products and services from
residential and business customers. Revenue growth by channel is
tabulated below:
|
For the Three Months
Ended
|
|
(USD $M unless
otherwise noted)
|
December
30, 2023
|
|
December
31, 2022
|
|
Change
|
|
%
Change
|
|
Revenue, net
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
$
333.8
|
|
$
309.3
|
|
$
24.5
|
|
8 %
|
|
Water Refill/Water
Filtration
|
57.3
|
|
49.9
|
|
$
7.4
|
|
15 %
|
|
Other Water
|
15.1
|
|
8.0
|
|
$
7.1
|
|
89 %
|
|
Water
Dispensers
|
11.6
|
|
14.1
|
|
$
(2.5)
|
|
(18) %
|
|
Other
|
20.9
|
|
23.8
|
|
$
(2.9)
|
|
(12) %
|
|
Revenue, net as
reported
|
$
438.7
|
|
$
405.1
|
|
$
33.6
|
|
8 %
|
|
Foreign exchange
impact
|
0.1
|
|
—
|
|
0.1
|
|
n/a
|
|
Revenue excluding
foreign exchange
impact
|
$
438.8
|
|
$
405.1
|
|
$
33.7
|
|
8 %
|
- Gross profit increased 14% to $284
million compared to $249
million. Gross margin increased 330 bps to 64.7% compared to
61.4%, driven by pricing initiatives, increased demand and
operating efficiencies.
- SG&A expenses increased 13% to $250
million compared to $221
million. The increase was driven by higher selling and
operating costs including delivery commissions that supported
volume and revenue growth.
- Reported net income from continuing operations and net income
per diluted share were $13 million
and $0.08, respectively, compared to
reported net income from continuing operations and net income per
diluted share of $35 million and
$0.22, respectively. Adjusted net
income and adjusted net income per diluted share were $19 million and $0.12, respectively, compared to $21 million and $0.13 in the prior year.
- Adjusted EBITDA increased 7% to $95
million compared to $89
million, driven primarily by pricing initiatives, customer
demand and effective expense management. Adjusted EBITDA margin was
21.6% for the quarter, compared to 21.9%.
- Net cash provided by operating activities from continuing
operations of $67 million, less
$38 million of capital expenditures
and additions to intangible assets, resulted in $29 million of free cash flow, or $37 million of adjusted free cash flow (adjusting
for the items set forth on Exhibit 7), compared to adjusted free
cash flow of $31 million in the prior
year.
QUARTERLY DIVIDEND
Primo Water announced that its
Board of Directors declared a dividend of US$0.09 per share on common shares, payable in
cash on March 25, 2024 to shareowners of record at the close
of business on March 8, 2024.
SHARE REPURCHASE PROGRAM
During 2023, Primo Water
repurchased approximately 1.4 million common shares for
approximately $21 million.
Effective upon the closing of the sale of a significant portion of
Primo Water's International
business, the share repurchase authorization was increased from
$50 million to $75 million. Under the program, the
Company's common shares may be repurchased periodically in open
market or privately negotiated transactions.
The actual timing, manner, number, and value of shares
repurchased under the program will be determined by management at
its discretion and will depend on a number of factors, including
the market price of Primo Water's
common shares, general market and economic conditions, applicable
law and other requirements, and other business considerations,
provided however that the price per common share will not exceed
the market price as at the date of acquisition (plus reasonable
brokerage fees and commissions) in accordance with applicable
securities laws and exchange rules.
ABOUT PRIMO WATER CORPORATION
Primo Water is a leading
North America-focused pure-play
water solutions provider that operates largely under a recurring
revenue model in the large format water category (defined as 3
gallons or greater). This business strategy is commonly referred to
as "razor-razorblade" because the initial sale of a product creates
a base of users who frequently purchase complementary consumable
products. The razor in Primo Water's
revenue model is its industry leading line-up of innovative water
dispensers, which are sold through approximately 10,900 retail
locations and online at various price points. The dispensers help
increase household and business penetration which drives recurring
purchases of Primo Water's
razorblade offering or water solutions. Primo Water's razorblade offering is comprised
of Water Direct, Water Exchange, and Water Refill. Through its
Water Direct business, Primo Water
delivers sustainable hydration solutions direct to customers,
whether at home or to businesses. Through its Water Exchange
business, customers visit retail locations and purchase a
pre-filled bottle of water. Once consumed, empty bottles are
exchanged at our recycling center displays, which provide a ticket
that offers a discount toward the purchase of a new bottle. Water
Exchange is available in approximately 17,500 retail locations.
Through its Water Refill business, customers refill empty bottles
at approximately 23,500 self-service refill drinking water
stations. Primo Water also offers
water filtration units across North
America.
Primo Water's water solutions
expand consumer access to purified, spring, and mineral water to
promote a healthier, more sustainable lifestyle while
simultaneously reducing plastic waste and pollution. Primo Water is committed to its water
stewardship standards and is proud to partner with the
International Bottled Water Association (IBWA) in North America which ensures strict adherence
to safety, quality, sanitation and regulatory standards for the
benefit of consumer protection.
Primo Water is headquartered in
Tampa, Florida (USA). For more
information, visit www.primowatercorp.com.
Non-GAAP Measures
To supplement its reporting of financial measures determined in
accordance with U.S. GAAP (Generally Accepted Accounting
Principles), Primo Water utilizes
certain non-GAAP financial measures. Primo Water utilizes Adjusted net income (loss),
Adjusted net income (loss) per diluted share, Adjusted EBITDA and
Adjusted EBITDA margin to separate the impact of certain items from
the underlying business. Because Primo Water 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
Primo Water's underlying business
performance and the performance of its management.
Additionally, Primo Water
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 and additions to intangible assets to present free cash
flow, and by excluding the items identified on the exhibits hereto
to present adjusted free cash flow, which management believes
provides useful information to investors in assessing our
performance, comparing Primo Water's
performance to the performance of the Company's peer group and
assessing the Company's ability to service debt and finance
strategic opportunities, which include investing in Primo Water's business, making strategic
acquisitions, paying dividends, and strengthening the balance
sheet. With respect to the Company's expectations of its future
performance, the Company's reconciliations of Q1 2024 and full-year
2024 Adjusted EBITDA and 2024 adjusted free cash flow guidance are
not available, as the Company is unable to quantify certain amounts
to the degree of precision that would be required in the relevant
GAAP measures without unreasonable effort. These items include
restructuring costs and restructuring-related impairment charges,
acquisition/divestiture related costs, gains or losses on the sale
of businesses or other assets, and the income tax effects of these
items and/or other income tax-related events.. These items depend
on highly variable factors and any such reconciliations would imply
a degree of precision that would be confusing or misleading to
investors. Primo Water expects the
variability of these factors to have a significant, and potentially
unpredictable, impact on the Company's future GAAP financial
results. The non-GAAP financial measures described above are in
addition to, and not meant to be considered superior to, or a
substitute for, Primo Water'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 Primo
Water makes the statements. Forward-looking statements
involve inherent risks and uncertainties and Primo Water cautions you that several important
factors could cause actual results to differ materially from those
contained in any such forward-looking statement. You can identify
forward-looking statements by words such as "may," "will," "would,"
"should," "could," "expect," "aim," "anticipate," "believe,"
"estimate," "intend," "plan," "predict," "project," "seek,"
"potential," "opportunities," and other similar expressions and the
negatives of such expressions. However, not all
forward-looking statements contain these words. The
forward-looking statements contained in this press release include,
but are not limited to, statements regarding future financial and
operating trends and results (including Primo Water's outlook on Q1 and full-year 2024
revenue, Adjusted EBITDA and Adjusted Free Cash Flow), and related
matters. The forward-looking statements are based on assumptions
regarding management's current plans and estimates. Management
believes these assumptions to be reasonable, but there is no
assurance that they will prove to be accurate.
Factors that could cause actual results to differ materially
from those described in this press release include, among others:
financial condition and results of operations; Primo Water's ability to compete successfully in
the markets in which it operates; fluctuations in commodity prices
and Primo Water's ability to pass on
increased costs to its customers or hedge against such rising
costs, and the impact of those increased prices on its volumes;
Primo Water's ability to maintain
favorable arrangements and relationships with its suppliers;
Primo Water's ability to manage
supply chain disruptions and cost increases related to inflation;
Primo Water's ability to manage its
operations successfully; currency fluctuations that adversely
affect the exchange between currencies including the U.S. dollar,
the British pound sterling, the Euro and the Canadian dollar; the
impact on Primo Water's financial
results from uncertainty in the financial markets and other adverse
changes in general economic conditions, including inflation and
interest rates; any disruption to production at Primo Water's
manufacturing facilities; Primo
Water's ability to maintain access to its water sources; the
impact of climate change on Primo
Water's business; Primo
Water's ability to protect its intellectual property; the
seasonal nature of Primo Water's
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, such as the
Russia/Ukraine war or the Israel/Hamas war; the impact of a pandemic,
such as COVID-19, related government actions and Primo Water's strategy in response thereto on
our business; Primo Water's ability
to fully realize the potential benefit of the transaction or other
strategic opportunities that it pursues; Primo Water's ability to realize cost synergies
of its acquisitions due to integration difficulties and other
challenges; Primo Water's exposure
to intangible asset risk; Primo
Water's ability to meet its obligations under its debt
agreements, and risks of further increases to its indebtedness;
Primo Water's ability to maintain
compliance with the covenants and conditions under its debt
agreements; fluctuations in interest rates, which could increase
Primo Water's borrowing costs;
Primo Water's ability to recruit,
retain and integrate new management; Primo
Water's ability to renew its collective bargaining
agreements from time to time on satisfactory terms; compliance with
product health and safety standards; liability for injury or
illness caused by the consumption of contaminated products;
liability and damage to Primo
Water's reputation as a result of litigation or legal
proceedings; changes in the legal and regulatory environment in
which Primo Water operates;
Primo Water's ability to adequately
address the challenges and risks associated with its 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; the impact on Primo Water's tax obligations and effective tax
rate arising from changes in local tax laws or countries adopting
more aggressive interpretations of tax laws; disruptions in
Primo Water's information systems;
Primo Water's ability to securely
maintain its customers' confidential or credit card information, or
other private data relating to Primo
Water's employees or the Company; Primo Water's ability to maintain its quarterly
dividend; or credit rating changes.
The foregoing list of factors is not exhaustive. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date hereof. Readers are
urged to carefully review and consider the various disclosures,
including but not limited to risk factors contained in Primo Water's Annual Report on Form 10-K and its
quarterly reports on Form 10-Q, as well as other filings with the
securities commissions. Primo Water
does not undertake to update or revise any of these statements
considering new information or future events, except as expressly
required by applicable law.
Website: www.primowatercorp.com
|
PRIMO WATER
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 Fiscal Year
Ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
438.7
|
|
$
405.1
|
|
$
1,771.8
|
|
$
1,693.2
|
|
Cost of
sales
|
154.8
|
|
156.4
|
|
634.8
|
|
674.0
|
|
Gross
profit
|
283.9
|
|
248.7
|
|
1,137.0
|
|
1,019.2
|
|
Selling, general and
administrative expenses
|
250.0
|
|
221.3
|
|
976.0
|
|
883.8
|
|
Loss on disposal of
property, plant and equipment, net
|
5.3
|
|
3.3
|
|
9.1
|
|
7.4
|
|
Acquisition and
integration expenses
|
3.5
|
|
2.6
|
|
9.5
|
|
12.1
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
11.2
|
|
Gain on sale of
property
|
(15.7)
|
|
(38.8)
|
|
(21.0)
|
|
(38.8)
|
|
Operating
income
|
40.8
|
|
60.3
|
|
163.4
|
|
143.5
|
|
Other expense (income),
net
|
4.9
|
|
(2.2)
|
|
1.2
|
|
(2.5)
|
|
Interest expense,
net
|
16.6
|
|
18.2
|
|
71.4
|
|
67.8
|
|
Income from
continuing operations before income taxes
|
19.3
|
|
44.3
|
|
90.8
|
|
78.2
|
|
Income tax
expense
|
6.0
|
|
9.5
|
|
27.0
|
|
19.5
|
|
Net income from
continuing operations
|
$
13.3
|
|
$
34.8
|
|
$
63.8
|
|
$
58.7
|
|
Net income (loss) from
discontinued operations, net of income
taxes
|
164.3
|
|
22.7
|
|
174.3
|
|
(29.1)
|
|
Net
income
|
$
177.6
|
|
$
57.5
|
|
$
238.1
|
|
$
29.6
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.08
|
|
$
0.22
|
|
$
0.40
|
|
$
0.36
|
|
Discontinued
operations
|
$
1.03
|
|
$
0.14
|
|
$
1.09
|
|
$
(0.18)
|
|
Net income
|
$
1.11
|
|
$
0.36
|
|
$
1.49
|
|
$
0.18
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.08
|
|
$
0.22
|
|
$
0.40
|
|
$
0.36
|
|
Discontinued
operations
|
$
1.03
|
|
$
0.14
|
|
$
1.08
|
|
$
(0.18)
|
|
Net income
|
$
1.11
|
|
$
0.36
|
|
$
1.48
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
159,471
|
|
159,857
|
|
159,452
|
|
160,763
|
|
Diluted
|
160,523
|
|
161,061
|
|
160,619
|
|
161,885
|
|
PRIMO WATER
CORPORATION
|
|
|
EXHIBIT
2
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
(in millions of U.S.
dollars, except share amounts, U.S. GAAP)
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
December 30,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
507.9
|
|
$
78.8
|
|
Accounts receivable,
net of allowance of $12.7 ($12.1 as of December 31,
2022)
|
156.0
|
|
170.7
|
|
Inventories
|
47.3
|
|
65.3
|
|
Prepaid expenses and
other current assets
|
26.0
|
|
35.9
|
|
Current assets of
discontinued operations
|
128.7
|
|
187.3
|
|
Total current
assets
|
865.9
|
|
538.0
|
|
Property, plant and
equipment, net
|
556.5
|
|
549.5
|
|
Operating lease
right-of-use-assets
|
136.0
|
|
143.2
|
|
Goodwill
|
1,004.6
|
|
997.2
|
|
Intangible assets,
net
|
714.2
|
|
723.8
|
|
Other long-term assets,
net
|
20.2
|
|
25.9
|
|
Long-term assets of
discontinued operations
|
225.6
|
|
689.4
|
|
Total
assets
|
$
3,523.0
|
|
$
3,667.0
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
borrowings
|
$
—
|
|
$
205.8
|
|
Current maturities of
long-term debt
|
14.2
|
|
10.9
|
|
Accounts payable and
accrued liabilities
|
276.4
|
|
282.6
|
|
Current operating lease
obligations
|
25.6
|
|
26.6
|
|
Current liabilities of
discontinued operations
|
109.9
|
|
164.7
|
|
Total current
liabilities
|
426.1
|
|
690.6
|
|
Long-term
debt
|
1,270.8
|
|
1,252.3
|
|
Operating lease
obligations
|
124.0
|
|
127.6
|
|
Deferred tax
liabilities
|
144.2
|
|
142.5
|
|
Other long-term
liabilities
|
64.4
|
|
55.4
|
|
Long-term liabilities
of discontinued operations
|
52.2
|
|
115.7
|
|
Total
liabilities
|
2,081.7
|
|
2,384.1
|
|
Equity
|
|
|
|
|
Common shares, no par
value -159,480,638 shares issued (December 31, 2022 -
159,752,299 shares issued)
|
1,288.6
|
|
1,283.2
|
|
Additional
paid-in-capital
|
90.6
|
|
91.3
|
|
Retained earnings
(accumulated deficit)
|
167.2
|
|
(9.4)
|
|
Accumulated other
comprehensive loss
|
(105.1)
|
|
(82.2)
|
|
Total Primo Water
Corporation equity
|
1,441.3
|
|
1,282.9
|
|
Total liabilities
and equity
|
$
3,523.0
|
|
$
3,667.0
|
|
PRIMO WATER
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 Fiscal Year
Ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
177.6
|
|
$
57.5
|
|
$
238.1
|
|
$
29.6
|
|
Net income (loss) from
discontinued operations, net of income taxes
|
164.3
|
|
22.7
|
|
174.3
|
|
(29.1)
|
|
Net income from
continuing operations
|
$
13.3
|
|
$
34.8
|
|
$
63.8
|
|
$
58.7
|
|
Adjustments to
reconcile net income from continuing operations to
cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
49.7
|
|
46.1
|
|
193.3
|
|
182.0
|
|
Amortization of
financing fees
|
0.9
|
|
0.8
|
|
3.4
|
|
3.3
|
|
Share-based
compensation expense
|
8.0
|
|
6.7
|
|
14.1
|
|
16.4
|
|
Provision for deferred
income taxes
|
(4.6)
|
|
9.6
|
|
1.5
|
|
17.3
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
11.2
|
|
Loss on disposal of
property, plant and equipment, net
|
5.3
|
|
3.3
|
|
9.1
|
|
7.4
|
|
Gain on sale of
property
|
(15.7)
|
|
(38.8)
|
|
(21.0)
|
|
(38.8)
|
|
Other non-cash
items
|
8.7
|
|
6.0
|
|
4.1
|
|
6.0
|
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
19.4
|
|
16.2
|
|
15.2
|
|
(2.6)
|
|
Inventories
|
2.6
|
|
2.9
|
|
7.2
|
|
(9.4)
|
|
Prepaid expenses and
other current assets
|
(2.7)
|
|
(9.8)
|
|
3.0
|
|
(4.4)
|
|
Other
assets
|
0.2
|
|
(3.0)
|
|
(0.7)
|
|
(3.7)
|
|
Accounts payable and
accrued liabilities and other liabilities
|
(18.1)
|
|
(8.4)
|
|
(3.8)
|
|
(5.1)
|
|
Net cash provided by
operating activities from continuing operations
|
67.0
|
|
66.4
|
|
289.2
|
|
238.3
|
|
Cash flows from
investing activities of continuing operations:
|
|
|
|
|
|
|
|
|
Acquisitions, net of
cash received
|
(10.0)
|
|
(6.0)
|
|
(34.6)
|
|
(10.3)
|
|
Additions to property,
plant and equipment
|
(35.7)
|
|
(43.5)
|
|
(139.2)
|
|
(162.1)
|
|
Additions to
intangible assets
|
(2.0)
|
|
—
|
|
(8.5)
|
|
(6.7)
|
|
Proceeds from sale of
property, plant and equipment
|
—
|
|
2.0
|
|
0.4
|
|
2.7
|
|
Proceeds from sale of
property
|
22.3
|
|
50.3
|
|
31.0
|
|
50.3
|
|
Other investing
activities
|
0.8
|
|
0.7
|
|
3.6
|
|
(1.0)
|
|
Net cash (used in)
provided by investing activities from continuing
|
(24.6)
|
|
3.5
|
|
(147.3)
|
|
(127.1)
|
|
Cash flows from
financing activities of continuing operations:
|
|
|
|
|
|
|
|
|
Payments of long-term
debt
|
(2.8)
|
|
(3.4)
|
|
(11.5)
|
|
(12.1)
|
|
Proceeds from
short-term borrowings
|
—
|
|
15.0
|
|
116.0
|
|
37.0
|
|
Payments on short-term
borrowings
|
(132.0)
|
|
(51.0)
|
|
(313.0)
|
|
(51.0)
|
|
Issuance of common
shares
|
0.4
|
|
0.4
|
|
6.1
|
|
2.5
|
|
Common shares
repurchased and canceled
|
(3.6)
|
|
(14.7)
|
|
(26.0)
|
|
(27.7)
|
|
Dividends paid to
common and preferred shareholders
|
(13.1)
|
|
(11.2)
|
|
(51.7)
|
|
(45.4)
|
|
Payment of contingent
consideration for acquisitions
|
(0.2)
|
|
(1.2)
|
|
(1.5)
|
|
(3.5)
|
|
Other financing
activities
|
(1.2)
|
|
8.8
|
|
(8.8)
|
|
8.8
|
|
Net cash used in
financing activities from continuing operations
|
(152.5)
|
|
(57.3)
|
|
(290.4)
|
|
(91.4)
|
|
Cash flows from
discontinued operations:
|
|
|
|
|
|
|
|
|
Operating activities
of discontinued operations
|
24.1
|
|
32.2
|
|
61.1
|
|
43.3
|
|
Investing activities
of discontinued operations
|
520.7
|
|
(8.1)
|
|
488.3
|
|
(54.4)
|
|
Financing activities
of discontinued operations
|
(4.5)
|
|
(12.2)
|
|
4.6
|
|
(11.4)
|
|
Net cash provided by
(used in) discontinued operations
|
540.3
|
|
11.9
|
|
554.0
|
|
(22.5)
|
|
Effect of exchange
rate changes on cash
|
2.5
|
|
2.6
|
|
2.4
|
|
(3.1)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
432.7
|
|
27.1
|
|
407.9
|
|
(5.8)
|
|
Cash and cash
equivalents and restricted cash, beginning of
period
|
97.8
|
|
95.5
|
|
122.6
|
|
128.4
|
|
Cash and cash
equivalents and restricted cash, end of period
|
$
530.5
|
|
$
122.6
|
|
$
530.5
|
|
$
122.6
|
|
Cash and cash
equivalents and restricted cash of discontinued
operations, end of period
|
22.6
|
|
43.8
|
|
22.6
|
|
43.8
|
|
Cash and cash
equivalents and restricted cash of continuing
operations, end of period
|
$
507.9
|
|
$
78.8
|
|
$
507.9
|
|
$
78.8
|
|
PRIMO WATER
CORPORATION
|
|
|
|
|
|
EXHIBIT
4
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
(in millions of U.S.
dollars, U.S. GAAP)
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended December 30, 2023
|
|
|
North
America
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
333.8
|
|
$
—
|
|
$
333.8
|
|
Water Refill/Water
Filtration
|
|
57.3
|
|
—
|
|
57.3
|
|
Other Water
|
|
15.1
|
|
—
|
|
15.1
|
|
Water
Dispensers
|
|
11.6
|
|
—
|
|
11.6
|
|
Other
|
|
20.8
|
|
0.1
|
|
20.9
|
|
Total
|
|
$
438.6
|
|
$
0.1
|
|
$
438.7
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
283.8
|
|
$
0.1
|
|
$
283.9
|
|
Gross margin
%
|
|
64.7 %
|
|
100.0 %
|
|
64.7 %
|
|
Selling, general and
administrative expenses
|
|
$
232.5
|
|
$
17.5
|
|
$
250.0
|
|
SG&A % of
revenue
|
|
53.0 %
|
|
NM
|
|
57.0 %
|
|
Operating income
(loss)
|
|
$
59.9
|
|
$
(19.1)
|
|
$
40.8
|
|
Depreciation and
amortization
|
|
$
49.4
|
|
$
0.3
|
|
$
49.7
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended December 31, 2022
|
|
|
North
America
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
309.3
|
|
$
—
|
|
$
309.3
|
|
Water Refill/Water
Filtration
|
|
49.9
|
|
—
|
|
49.9
|
|
Other Water
|
|
8.0
|
|
—
|
|
8.0
|
|
Water
Dispensers
|
|
14.1
|
|
—
|
|
14.1
|
|
Other
|
|
23.7
|
|
0.1
|
|
23.8
|
|
Total
|
|
$
405.0
|
|
$
0.1
|
|
$
405.1
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
248.6
|
|
$
0.1
|
|
$
248.7
|
|
Gross margin
%
|
|
61.4 %
|
|
100.0 %
|
|
61.4 %
|
|
Selling, general and
administrative expenses
|
|
$
206.8
|
|
$
14.5
|
|
$
221.3
|
|
SG&A % of
revenue
|
|
51.1 %
|
|
NM
|
|
54.6 %
|
|
Operating income
(loss)
|
|
$
74.5
|
|
$
(14.2)
|
|
$
60.3
|
|
Depreciation and
amortization
|
|
$
45.8
|
|
$
0.3
|
|
$
46.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Fiscal Year
Ended December 30, 2023
|
|
|
North
America
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
1,345.3
|
|
$
—
|
|
$
1,345.3
|
|
Water Refill/Water
Filtration
|
|
226.9
|
|
—
|
|
226.9
|
|
Other Water
|
|
51.9
|
|
—
|
|
51.9
|
|
Water
Dispensers
|
|
57.5
|
|
—
|
|
57.5
|
|
Other
|
|
89.6
|
|
0.6
|
|
90.2
|
|
Total
|
|
$
1,771.2
|
|
$
0.6
|
|
$
1,771.8
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
1,136.4
|
|
$
0.6
|
|
$
1,137.0
|
|
Gross margin
%
|
|
64.2 %
|
|
100.0 %
|
|
64.2 %
|
|
Selling, general and
administrative expenses
|
|
$
919.7
|
|
$
56.3
|
|
$
976.0
|
|
SG&A % of
revenue
|
|
51.9 %
|
|
NM
|
|
55.1 %
|
|
Operating income
(loss)
|
|
$
222.2
|
|
$
(58.8)
|
|
$
163.4
|
|
Depreciation and
amortization
|
|
$
191.9
|
|
$
1.4
|
|
$
193.3
|
|
|
|
|
|
|
|
|
|
For the Fiscal Year
Ended December 31, 2022
|
|
|
North
America
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
1,242.8
|
|
$
7.4
|
|
$
1,250.2
|
|
Water Refill/Water
Filtration
|
|
192.0
|
|
—
|
|
192.0
|
|
Other Water
|
|
73.8
|
|
—
|
|
73.8
|
|
Water
Dispensers
|
|
70.5
|
|
—
|
|
70.5
|
|
Other
|
|
106.5
|
|
0.2
|
|
106.7
|
|
Total
|
|
$
1,685.6
|
|
$
7.6
|
|
$
1,693.2
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
1,013.5
|
|
$
5.7
|
|
$
1,019.2
|
|
Gross margin
%
|
|
60.1 %
|
|
75.0 %
|
|
60.2 %
|
|
Selling, general and
administrative expenses
|
|
$
830.8
|
|
$
53.0
|
|
$
883.8
|
|
SG&A % of
revenue
|
|
49.3 %
|
|
NM
|
|
52.2 %
|
|
Operating income
(loss)
|
|
$
203.7
|
|
$
(60.2)
|
|
$
143.5
|
|
Depreciation and
amortization
|
|
$
179.6
|
|
$
2.4
|
|
$
182.0
|
|
PRIMO WATER
CORPORATION
|
|
|
|
|
EXHIBIT
5
|
|
SUPPLEMENTARY
INFORMATION - NON-GAAP - ANALYSIS OF REVENUE AND GROSS PROFIT BY
REPORTING
SEGMENT
|
|
(in millions of U.S.
dollars, except percentage amounts)
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended December 30, 2023
|
|
North
America
|
|
Other
|
|
Primo
|
|
Change in
revenue
|
$
33.6
|
|
$
—
|
|
$
33.6
|
|
Impact of foreign
exchange (a)
|
0.1
|
|
—
|
|
0.1
|
|
Change excluding
foreign exchange
|
$
33.7
|
|
$
—
|
|
$
33.7
|
|
Percentage change in
revenue
|
8.3 %
|
|
— %
|
|
8.3 %
|
|
Percentage change in
revenue excluding foreign exchange
|
8.3 %
|
|
— %
|
|
8.3 %
|
|
|
|
|
|
|
|
For the Fiscal Year
Ended December 30, 2023
|
|
North
America
|
|
Other
|
|
Primo
|
|
Change in
revenue
|
$
85.6
|
|
$
(7.0)
|
|
$
78.6
|
|
Impact of foreign
exchange (a)
|
2.4
|
|
—
|
|
2.4
|
|
Change excluding
foreign exchange
|
$
88.0
|
|
$
(7.0)
|
|
$
81.0
|
|
Percentage change in
revenue
|
5.1 %
|
|
(92.1) %
|
|
4.6 %
|
|
Percentage change in
revenue excluding foreign exchange
|
5.2 %
|
|
(92.1) %
|
|
4.8 %
|
|
|
|
|
|
|
|
For the Three Months
Ended December 30, 2023
|
|
North
America
|
|
Other
|
|
Primo
|
|
Change in gross
profit
|
$
35.2
|
|
$
—
|
|
$
35.2
|
|
Impact of foreign
exchange (a)
|
0.1
|
|
—
|
|
0.1
|
|
Change excluding
foreign exchange
|
$
35.3
|
|
$
—
|
|
$
35.3
|
|
Percentage change in
gross profit
|
14.2 %
|
|
— %
|
|
14.2 %
|
|
Percentage change in
gross profit excluding foreign exchange
|
14.2 %
|
|
— %
|
|
14.2 %
|
|
|
|
|
|
|
|
For the Fiscal Year
Ended December 30, 2023
|
|
North
America
|
|
Other
|
|
Primo
|
|
Change in gross
profit
|
$
122.9
|
|
$
(5.1)
|
|
$
117.8
|
|
Impact of foreign
exchange (a)
|
1.5
|
|
—
|
|
1.5
|
|
Change excluding
foreign exchange
|
$
124.4
|
|
$
(5.1)
|
|
$
119.3
|
|
Percentage change in
gross profit
|
12.1 %
|
|
(89.5) %
|
|
11.6 %
|
|
Percentage change in
gross profit excluding foreign exchange
|
12.3 %
|
|
(89.5) %
|
|
11.7 %
|
|
(a) Impact of foreign
exchange is the difference between the current period revenue and
gross profit translated utilizing the current period average
foreign exchange rates less the current period revenue and gross
profit translated utilizing the prior period average foreign
exchange rates.
|
|
PRIMO WATER
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 Fiscal Year
Ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
13.3
|
|
$
34.8
|
|
$
63.8
|
|
$
58.7
|
|
Interest expense,
net
|
16.6
|
|
18.2
|
|
71.4
|
|
67.8
|
|
Income tax
expense
|
6.0
|
|
9.5
|
|
27.0
|
|
19.5
|
|
Depreciation and
amortization
|
49.7
|
|
46.1
|
|
193.3
|
|
182.0
|
|
EBITDA
|
$
85.6
|
|
$
108.6
|
|
$
355.5
|
|
$
328.0
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs (a)
|
3.5
|
|
2.6
|
|
9.5
|
|
12.1
|
|
Share-based
compensation costs (b)
|
8.0
|
|
6.7
|
|
14.1
|
|
16.4
|
|
COVID-19 costs
(c)
|
—
|
|
(0.6)
|
|
—
|
|
(0.6)
|
|
Impairment charges
(d)
|
—
|
|
—
|
|
—
|
|
11.2
|
|
Foreign exchange and
other losses (gains), net (e)
|
5.8
|
|
(0.9)
|
|
5.7
|
|
0.9
|
|
Loss on disposal of
property, plant and equipment, net (f)
|
5.3
|
|
3.3
|
|
9.1
|
|
7.4
|
|
Gain on sale of
business (g)
|
—
|
|
(0.3)
|
|
—
|
|
(0.7)
|
|
Gain on sale of
property (h)
|
(15.7)
|
|
(38.8)
|
|
(21.0)
|
|
(38.8)
|
|
Other adjustments, net
(i)
|
2.4
|
|
8.0
|
|
7.8
|
|
7.9
|
|
Adjusted
EBITDA
|
$
94.9
|
|
$
88.6
|
|
$
380.7
|
|
$
343.8
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
438.7
|
|
$
405.1
|
|
$
1,771.8
|
|
$
1,693.2
|
|
Adjusted EBITDA
margin %
|
21.6 %
|
|
21.9 %
|
|
21.5 %
|
|
20.3 %
|
|
|
|
For the Three Months
Ended
|
|
For the Fiscal Year
Ended
|
|
Location in
Consolidated Statements of
Operations
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(a) Acquisition and
integration costs
|
Acquisition and
integration expenses
|
|
$
3.5
|
|
$
2.6
|
|
$
9.5
|
|
$
12.1
|
|
(b) Share-based
compensation costs
|
Selling, general and
administrative expenses
|
|
8.0
|
|
6.7
|
|
14.1
|
|
16.4
|
|
(c) COVID-19
costs
|
Selling, general and
administrative expenses
|
|
—
|
|
(0.6)
|
|
—
|
|
(0.6)
|
|
(d) Impairment
charges
|
Impairment
charges
|
|
—
|
|
—
|
|
—
|
|
11.2
|
|
(e) Foreign exchange
and other losses (gains), net
|
Other expense (income),
net
|
|
5.8
|
|
(0.9)
|
|
5.7
|
|
0.9
|
|
(f) Loss on disposal of
property, plant and
equipment, net
|
Loss on disposal of
property, plant and
equipment, net
|
|
5.3
|
|
3.3
|
|
9.1
|
|
7.4
|
|
(g) Gain on sale of
business
|
Other expense (income),
net
|
|
—
|
|
(0.3)
|
|
—
|
|
(0.7)
|
|
(h) Gain on sale of
property
|
Gain on sale of
property
|
|
(15.7)
|
|
(38.8)
|
|
(21.0)
|
|
(38.8)
|
|
(i) Other adjustments,
net
|
Other expense (income),
net
|
|
(0.9)
|
|
(0.2)
|
|
(2.3)
|
|
(1.4)
|
|
Selling, general and
administrative expenses
|
|
3.3
|
|
8.2
|
|
10.1
|
|
9.3
|
|
PRIMO WATER
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 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
Net cash provided by
operating activities from continuing operations
|
$
67.0
|
|
$
66.4
|
|
Less: Additions
to property, plant, and equipment
|
(35.7)
|
|
(43.5)
|
|
Less: Additions to
intangible assets
|
(2.0)
|
|
—
|
|
Free Cash
Flow
|
$
29.3
|
|
$
22.9
|
|
|
|
|
|
Acquisition and
integration cash costs
|
1.4
|
|
1.3
|
|
Cash taxes paid for
property sales
|
5.1
|
|
—
|
|
COVID-19 related cash
costs
|
—
|
|
(0.6)
|
|
Cash costs related to
additions to property, plant and equipment for
integration of acquired entities
|
0.2
|
|
0.3
|
|
Tariffs refunds related
to property, plant, and equipment
|
0.7
|
|
—
|
|
Deferral of payroll tax
related costs - government programs
|
—
|
|
7.5
|
|
Adjusted Free Cash
Flow
|
$
36.7
|
|
$
31.4
|
|
|
|
|
|
For the Fiscal Year
Ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
Net cash provided by
operating activities from continuing operations
|
$
289.2
|
|
$
238.3
|
|
Less: Additions
to property, plant, and equipment
|
(139.2)
|
|
(162.1)
|
|
Less: Additions to
intangible assets
|
(8.5)
|
|
(6.7)
|
|
Free Cash
Flow
|
$
141.5
|
|
$
69.5
|
|
|
|
|
|
Acquisition and
integration cash costs
|
7.0
|
|
8.7
|
|
Cash taxes paid for
property sales
|
5.9
|
|
—
|
|
COVID-19 related cash
costs
|
—
|
|
(0.6)
|
|
Cash costs related to
additions to property, plant and equipment for
integration of acquired entities
|
0.3
|
|
0.3
|
|
Tariffs refunds related
to property, plant, and equipment
|
3.1
|
|
—
|
|
Deferral of payroll tax
related costs - government programs
|
—
|
|
7.5
|
|
Adjusted Free Cash
Flow
|
$
157.8
|
|
$
85.4
|
|
PRIMO WATER
CORPORATION
|
|
|
|
|
|
EXHIBIT
8
|
|
SUPPLEMENTARY
INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED
EPS
|
|
(in millions of U.S.
dollars, except share amounts)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Year
Ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
|
Net income from
continuing operations (as
reported)
|
$
13.3
|
|
$
34.8
|
|
$
63.8
|
|
$
58.7
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization expense of
customer lists
|
7.7
|
|
7.6
|
|
30.1
|
|
31.5
|
|
Acquisition and
integration costs
|
3.5
|
|
2.6
|
|
9.5
|
|
12.1
|
|
Share-based
compensation costs
|
8.0
|
|
6.7
|
|
14.1
|
|
16.4
|
|
COVID-19
costs
|
—
|
|
(0.6)
|
|
—
|
|
(0.6)
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
11.2
|
|
Foreign exchange and
other losses (gains), net
|
5.8
|
|
(0.9)
|
|
5.7
|
|
0.9
|
|
Gain on sale of
business
|
—
|
|
(0.3)
|
|
—
|
|
(0.7)
|
|
Gain on sale of
property
|
(15.7)
|
|
(38.8)
|
|
(21.0)
|
|
(38.8)
|
|
Other adjustments,
net
|
2.4
|
|
8.0
|
|
7.8
|
|
7.9
|
|
Tax impact of
adjustments (a)
|
(6.4)
|
|
1.5
|
|
(10.2)
|
|
(11.8)
|
|
Adjusted net income
from continuing operations
|
$
18.6
|
|
$
20.6
|
|
$
99.8
|
|
$
86.8
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(as reported)
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
13.3
|
|
$
34.8
|
|
$
63.8
|
|
$
58.7
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
$
0.08
|
|
$
0.22
|
|
$
0.40
|
|
$
0.36
|
|
Diluted EPS
|
$
0.08
|
|
$
0.22
|
|
$
0.40
|
|
$
0.36
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (in
thousands)
|
|
|
|
|
|
|
|
|
Basic
|
159,471
|
|
159,857
|
|
159,452
|
|
160,763
|
|
Diluted
|
160,523
|
|
161,061
|
|
160,619
|
|
161,885
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share (Non-GAAP)
|
|
|
|
|
|
|
|
|
Adjusted net income
from continuing operations
(Non-GAAP)
|
$
18.6
|
|
$
20.6
|
|
$
99.8
|
|
$
86.8
|
|
|
|
|
|
|
|
|
|
Adjusted diluted EPS
(Non-GAAP)
|
$
0.12
|
|
$
0.13
|
|
$
0.62
|
|
$
0.54
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
(in thousands) (Non-GAAP) (b)
|
160,523
|
|
161,061
|
|
160,619
|
|
161,885
|
|
(a) The tax effect for
adjusted net income is based upon an analysis of the statutory tax
treatment and the applicable tax rate for the jurisdiction in which
the pre-tax adjusting items incurred and for which realization of
the resulting tax benefit (if any) is expected. A reduced or 0% tax
rate is applied to jurisdictions where we do not expect to realize
a tax benefit due to a history of operating losses or other factors
resulting in a valuation allowance related to deferred tax
assets.
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(b) For the periods
presented, the non-GAAP diluted weighted average common shares
outstanding equaled the reported diluted weighted average common
shares outstanding.
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SOURCE Primo Water Corporation