Company records double-digit revenue growth;
issues second quarter Revenue and Adjusted EBITDA guidance and
affirms full year 2022 Revenue and Adjusted EBITDA guidance;
announces planned exit of Russia
business
TAMPA,
Fla., May 12, 2022 /PRNewswire/ - Primo
Water Corporation (NYSE: PRMW) (TSX: PRMW) (the "Company" or
"Primo"), a leading provider of sustainable drinking water
solutions in North America and
Europe, today announced its
results for the first quarter ended April 2,
2022.
(Unless stated otherwise, all first quarter 2022 comparisons
are relative to the first quarter of 2021; all information is in
U.S. dollars.)
FIRST QUARTER HIGHLIGHTS
- Revenue increased 10% to $526
million compared to $478
million (increased 14% excluding the exit of the single-use
retail bottled water business in North
America and the impact of foreign exchange).
- Reported net loss and net loss per diluted share were
$7 million and $0.04, respectively, compared to reported net
loss and net loss per diluted share of $10
million and $0.06,
respectively. Adjusted net income and adjusted net income per
diluted share were $14 million and
$0.09, respectively, compared to
adjusted net income and adjusted net income per diluted share of
$9 million and $0.06, respectively.
- Adjusted EBITDA increased 15% to $88
million compared to $76
million and Adjusted EBITDA margin increased 80 basis points
to 16.7%.
- Company reiterates revenue growth expectation of 9% to 10% in
2022, adjusted for the exit of North
America single-use retail bottled water business. Fiscal
year 2022 Adjusted EBITDA outlook remains between $410 million and $420
million.
|
|
For the Three Months
Ended
|
(in millions of U.S.
dollars, except per share amounts, percentages and
bps)
|
|
April 2,
2022
|
|
April 3,
2021
|
|
Y/Y
Change
|
Revenue, net
|
|
$
526.1
|
|
$
478.4
|
|
10%
|
Net loss
|
|
$
(6.7)
|
|
$
(10.2)
|
|
$
3.5
|
Net loss per diluted
share
|
|
$
(0.04)
|
|
$
(0.06)
|
|
$
0.02
|
Adjusted net
income
|
|
$
13.9
|
|
$
9.3
|
|
$
4.6
|
Adjusted net income per
diluted share
|
|
$
0.09
|
|
$
0.06
|
|
$
0.03
|
Adjusted
EBITDA
|
|
$
87.9
|
|
$
76.2
|
|
15%
|
Adjusted EBITDA margin
%
|
|
16.7%
|
|
15.9%
|
|
80bps
|
"I am very pleased with our performance in the first quarter of
2022, having delivered double digit revenue growth vs. the prior
year. Strong customer demand continued, led by our Water
Direct/Exchange business. Our customer base increased organically,
and customer retention rates improved once again as we worked
diligently to enhance the overall customer experience. I am proud
of the efforts of our team and am pleased with everyone's continued
commitment to safety, customer satisfaction and growth," said
Tom Harrington, Chief Executive
Officer.
"Our first quarter performance gives us confidence in achieving
our 2022 outlook of 9% to 10% revenue growth (adjusted for the
planned exit of the North American single-use retail bottled water
business) and Adjusted EBITDA of between $410 million and $420
million dollars. We are also confident in our long-term
outlook for high single digit organic revenue growth and Adjusted
EBITDA approaching $525 million for
2024," said Mr. Harrington.
OUTLOOK
Primo is targeting the following results from continuing
operations for the second quarter and full year 2022:
|
Q2
2022
|
FY
2022
|
|
Range
|
Range
|
($ in
millions)
|
Low
|
High
|
Low
|
High
|
Revenue
|
$540
|
$560
|
9%1
|
10%1
|
Adjusted
EBITDA
|
$100
|
$110
|
$410
|
$420
|
Cash
Taxes
|
|
~ $10
|
Interest
|
|
~ $60
|
Cap-Ex
|
|
~ $200
|
1Adjusted for the
exit of North America single-use retail bottled water business and
including revenue from 2021 tuck-in acquisitions. Assumes
current FX rates.
|
FIRST QUARTER 2022 RESULTS
CONFERENCE CALL
Primo will host a conference call, to be simultaneously webcast,
on Thursday, May 12, 2022, at
10:00 a.m. Eastern Time. A
question-and-answer session will follow management's presentation.
To participate, please call the following numbers:
First Quarter 2022 Earnings
Conference Call
North America: (888)
664-6392
International: (416) 764-8659
Conference ID: 27455088
This is a live, listen-only dial-in telephone line.
A slide presentation and live audio
webcast will be available through Primo'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.
RUSSIA UPDATE
Primo today announced it has decided to exit Russia and expects to complete the exit over
the next 60 to 90 days. Primo has a small presence in Russia, with 2021 revenues of approximately
$14 million and Adjusted EBITDA of
approximately $3 million.
FIRST QUARTER GLOBAL
PERFORMANCE
- Revenue increased 10% to $526
million compared to $478
million (increased by 14% excluding the exit of the
single-use retail bottled water business in North America and the impact of foreign
exchange). The increase was driven by customer growth, increased
demand across our customer base, pricing actions, and the benefit
from tuck-in acquisitions, partially offset by the planned exit
from the single-use retail bottled water business in North America and foreign exchange headwinds.
Revenue growth by channel is tabulated below:
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
(in millions of U.S.
dollars)
|
|
April 2,
2022
|
|
April 3,
2021
|
|
Change
|
|
%Change
|
Revenue,
net
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
337.3
|
|
$
287.6
|
|
$
49.7
|
|
17%
|
Water Refill/Water
Filtration
|
|
50.9
|
|
53.0
|
|
(2.1)
|
|
-4%
|
Other Water
|
|
50.4
|
|
56.3
|
|
(5.9)
|
|
-10%
|
Water
Dispensers
|
|
14.2
|
|
15.0
|
|
(0.8)
|
|
-5%
|
Other
|
|
73.3
|
|
66.5
|
|
6.8
|
|
10%
|
Revenue, net as
reported
|
|
$
526.1
|
|
$
478.4
|
|
$
47.7
|
|
10%
|
Less: Single-use retail
bottled water business in North America
|
|
(26.6)
|
|
(36.9)
|
|
10.3
|
|
-28%
|
Adjusted
revenue
|
|
$
499.5
|
|
$
441.5
|
|
$
58.0
|
|
13%
|
Foreign exchange
impact
|
|
4.6
|
|
-
|
|
4.6
|
|
n/a
|
Adjusted revenue
excluding foreign exchange impact
|
|
$
504.1
|
|
$
441.5
|
|
$
62.6
|
|
14%
|
|
|
|
|
|
|
|
|
|
- Gross profit increased 13% to $300
million compared to $265
million. Gross margin grew by 160 basis points to 56.9%
compared to 55.3%, driven by pricing actions, Water Direct volume
growth and the exit of single-use retail bottled water business in
North America, partially offset by
foreign exchange headwinds.
- SG&A expenses increased 12% to $278
million compared to $248
million. The increase was driven by higher selling and
operating costs supporting the volume and revenue growth of the
business as well as general inflationary cost increases.
- Reported net loss and net loss per diluted share were
$7 million and $0.04, respectively, compared to reported net
loss and net loss per diluted share of $10
million and $0.06,
respectively. Adjusted net income and adjusted net income per
diluted share were $14 million and
$0.09, respectively, compared to
adjusted net income and adjusted net income per diluted share of
$9 million and $0.06, respectively.
- Adjusted EBITDA increased 15% to $88
million compared to $76
million. Adjusted EBITDA margin increased by 80 basis points
to 16.7%, driven primarily by pricing actions, increased demand for
products and services across our customer base and the exit of
single-use retail bottled water business in North America.
- Net cash provided by operating activities of $24 million, less $41
million of capital expenditures and additions to intangible
assets, resulted in ($17) million of
free cash flow, or ($13) million of
adjusted free cash flow (adjusting for the items set forth on
Exhibit 7), compared to adjusted free cash flow of $6 million in the prior year.
FIRST QUARTER REPORTING SEGMENT
PERFORMANCE
North
America
- Revenue increased 9% to $397
million (increased by 13% excluding the single-use retail
bottled water business) driven by customer growth, pricing actions,
and increased demand for products and services from residential and
business-to-business customers, partially offset by the planned
exit from the single-use retail bottled water business and a
decline in water refill and water dispensers.
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
(in millions of U.S.
dollars)
|
|
April 2,
2022
|
|
April 3,
2021
|
|
Change
|
|
%Change
|
Revenue,
net
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
278.3
|
|
$
238.8
|
|
$
39.5
|
|
17%
|
Water Refill/Water
Filtration
|
|
42.2
|
|
45.1
|
|
(2.9)
|
|
-6%
|
Other Water
|
|
34.0
|
|
40.9
|
|
(6.9)
|
|
-17%
|
Water
Dispensers
|
|
14.2
|
|
15.0
|
|
(0.8)
|
|
-5%
|
Other
|
|
28.4
|
|
25.7
|
|
2.7
|
|
11%
|
Revenue, net as
reported
|
|
$
397.1
|
|
$
365.5
|
|
$
31.6
|
|
9%
|
Less: Single-use retail
bottled water business in North America
|
|
(26.6)
|
|
(36.9)
|
|
10.3
|
|
-28%
|
Adjusted
revenue
|
|
$
370.5
|
|
$
328.6
|
|
$
41.9
|
|
13%
|
Foreign exchange
impact
|
|
-
|
|
-
|
|
-
|
|
n/a
|
Adjusted revenue
excluding foreign exchange impact
|
|
$
370.5
|
|
$
328.6
|
|
$
41.9
|
|
13%
|
|
|
|
|
|
|
|
|
|
Rest of World
("ROW")
- Revenue increased 14% to $129
million (increased 18% excluding the impact of foreign
exchange) driven by increased demand for our products and services
from residential and business-to-business customers and tuck-in
acquisitions, partially offset by foreign exchange impact.
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
(in millions of U.S.
dollars)
|
|
April 2,
2022
|
|
April 3,
2021
|
|
Change
|
|
%Change
|
Revenue,
net
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
59.0
|
|
$
48.8
|
|
$
10.2
|
|
21%
|
Water Refill/Water
Filtration
|
|
8.7
|
|
7.9
|
|
0.8
|
|
10%
|
Other Water
|
|
16.4
|
|
15.4
|
|
1.0
|
|
6%
|
Water
Dispensers
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
|
|
44.9
|
|
40.8
|
|
4.1
|
|
10%
|
Revenue, net as
reported
|
|
$
129.0
|
|
$
112.9
|
|
$
16.1
|
|
14%
|
Foreign exchange
impact
|
|
4.6
|
|
-
|
|
4.6
|
|
n/a
|
Revenue excluding
foreign exchange impact
|
|
$
133.6
|
|
$
112.9
|
|
$
20.7
|
|
18%
|
|
|
|
|
|
|
|
|
|
ABOUT PRIMO WATER
CORPORATION
Primo Water Corporation is a leading pure-play water solutions
provider in North America and
Europe and generates approximately
$2.1 billion in annual revenue. Primo
operates largely under a recurring razor/razorblade revenue model.
The razor in Primo's revenue model is its industry leading line-up
of sleek and innovative water dispensers, which are sold through
retailers and online at various price points. The dispensers help
increase household penetration which drives recurring purchases of
Primo's razorblade offering. Primo's razorblade offering is
comprised of Water Direct, Water Exchange, and Water Refill.
Through its Water Direct business, Primo delivers sustainable
hydration solutions across its 22-country footprint direct to the
customer's door, whether at home or to businesses. Through its
Water Exchange and Water Refill businesses, Primo offers pre-filled
and reusable containers at over 13,000 locations and water refill
units at approximately 23,000 locations, respectively. Primo also
offers water filtration units across its 22-country footprint.
Primo'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 is committed to its water stewardship standards
and is proud to partner with the International Bottled Water
Association (IBWA) in North
America as well as with Watercoolers Europe (WE), which
ensure strict adherence to safety, quality, sanitation and
regulatory standards for the benefit of consumer protection.
Primo 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 GAAP (Generally Accepted Accounting Principles),
Primo utilizes certain non-GAAP financial measures. Primo
excludes from GAAP revenue the impact of foreign exchange and the
impact of the small-format single-use retail bottled water business
in North America to separate the
impact of these items from Primo's results of operations.
Primo also 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 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's underlying
business performance and the performance of its management.
Additionally, Primo 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'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'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 Q2 2022 and full year
2022 Adjusted EBITDA and 2024 Adjusted EBITDA 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 taxes, interest
costs that would occur if the Company issued debt, and costs to
acquire and or sell a business if the Company executed such
transactions, which could significantly affect our financial
results. 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 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'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 makes the statements.
Forward-looking statements involve inherent risks and uncertainties
and Primo cautions you that several 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 future financial and operating trends and
results (including Primo's outlook on second quarter and full year
2022 revenue and Adjusted EBITDA and Primo's multi-year growth
algorithm), Primo's planned exit from its single-use bottle
retail water business in North
America and its Russia
business, 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:
the impact of the spread of COVID-19, related government actions
and Primo's strategy in response thereto on our business, financial
condition and results of operations; Primo's ability to compete
successfully in the markets in which it operates; fluctuations in
commodity prices and Primo'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's ability to maintain
favorable arrangements and relationships with its suppliers;
Primo'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's financial results from
uncertainty in the financial markets and other adverse changes in
general economic conditions; any disruption to production at
Primo's manufacturing facilities; Primo's ability to maintain
access to its water sources; the impact of climate change on
Primo's business; Primo's ability to protect its intellectual
property; the seasonal nature of Primo'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; Primo's ability to fully realize the
potential benefit of transactions or other strategic opportunities
that it pursues; Primo's ability to realize cost synergies of its
acquisitions due to integration difficulties and other challenges;
Primo's exposure to intangible asset risk; Primo's ability to meet
its obligations under its debt agreements, and risks of further
increases to its indebtedness; Primo's ability to maintain
compliance with the covenants and conditions under its debt
agreements; fluctuations in interest rates, which could increase
Primo's borrowing costs; Primo's ability to recruit, retain and
integrate new management; Primo's ability to renew its collective
bargaining agreements 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's reputation as a result of
litigation or legal proceedings; changes in the legal and
regulatory environment in which Primo operates; Primo'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'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's information systems; Primo's
ability to securely maintain its customers' confidential or credit
card information, or other private data relating to Primo's
employees or the Company; Primo'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'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
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)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
April 2,
2022
|
|
April 3,
2021
|
Revenue,
net
|
$
526.1
|
|
$
478.4
|
Cost of
sales
|
226.5
|
|
213.9
|
Gross
profit
|
299.6
|
|
264.5
|
Selling, general and
administrative expenses
|
278.3
|
|
248.0
|
Loss on disposal of
property, plant and equipment, net
|
1.7
|
|
2.1
|
Acquisition and
integration expenses
|
4.3
|
|
1.3
|
Operating
income
|
15.3
|
|
13.1
|
Other expense (income),
net
|
2.7
|
|
(0.4)
|
Interest expense,
net
|
16.9
|
|
19.0
|
Loss before income
taxes
|
(4.3)
|
|
(5.5)
|
Income tax
expense
|
2.4
|
|
4.7
|
Net
loss
|
$
(6.7)
|
|
$
(10.2)
|
|
|
|
|
Net loss per common
share
|
|
|
|
|
|
|
|
Basic
|
$
(0.04)
|
|
$
(0.06)
|
Diluted
|
$
(0.04)
|
|
$
(0.06)
|
|
|
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
Basic
|
160,928
|
|
160,634
|
Diluted
|
160,928
|
|
160,634
|
|
|
|
|
|
|
|
|
PRIMO WATER
CORPORATION
|
|
|
EXHIBIT
2
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
(in millions of U.S.
dollars, except share amounts)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
April 2,
2022
|
|
January 1,
2022
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
98.0
|
|
$
128.4
|
Accounts receivable,
net of allowance of $21.4 ($20.8 as of January 1,
2022)
|
270.5
|
|
261.6
|
Inventories
|
105.2
|
|
94.6
|
Prepaid expenses and
other current assets
|
31.3
|
|
25.2
|
Total current
assets
|
505.0
|
|
509.8
|
Property, plant and
equipment, net
|
710.6
|
|
718.1
|
Operating lease
right-of-use-assets
|
173.0
|
|
177.4
|
Goodwill
|
1,317.7
|
|
1,321.4
|
Intangible assets,
net
|
944.1
|
|
969.8
|
Other long-term assets,
net
|
29.4
|
|
26.9
|
Total
assets
|
$
3,679.8
|
|
$
3,723.4
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
borrowings
|
$
225.8
|
|
$
222.1
|
Current maturities of
long-term debt
|
17.1
|
|
17.7
|
Accounts payable and
accrued liabilities
|
424.7
|
|
437.7
|
Current operating lease
obligations
|
33.6
|
|
32.3
|
Total current
liabilities
|
701.2
|
|
709.8
|
Long-term
debt
|
1,307.4
|
|
1,321.1
|
Operating lease
obligations
|
142.8
|
|
148.7
|
Deferred tax
liabilities
|
159.3
|
|
158.8
|
Other long-term
liabilities
|
64.6
|
|
64.9
|
Total
liabilities
|
2,375.3
|
|
2,403.3
|
Shareholders'
Equity
|
|
|
|
Common shares, no par
value - 161,075,550 (January 1, 2022 - 160,732,552) shares
issued
|
1,291.6
|
|
1,286.9
|
Additional
paid-in-capital
|
83.9
|
|
85.9
|
(Accumulated deficit)
retained earnings
|
(1.8)
|
|
16.4
|
Accumulated other
comprehensive loss
|
(69.2)
|
|
(69.1)
|
Total shareholders'
equity
|
1,304.5
|
|
1,320.1
|
Total liabilities
and shareholders' equity
|
$
3,679.8
|
|
$
3,723.4
|
|
|
|
|
PRIMO WATER
CORPORATION
|
|
|
EXHIBIT
3
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
(in millions of U.S.
dollars)
|
|
|
|
Unaudited
|
|
|
|
|
For the Three Months
Ended
|
|
April 2,
2022
|
|
April 3,
2021
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net
loss
|
$
(6.7)
|
|
$
(10.2)
|
Adjustments to reconcile net loss to cash flows from
operating activities of continuing operations:
|
Depreciation and amortization
|
61.2
|
|
53.1
|
Amortization of financing fees
|
0.9
|
|
0.8
|
Share-based compensation expense
|
3.3
|
|
2.4
|
Provision
for deferred income taxes
|
1.6
|
|
3.6
|
Gain on
sale of business
|
(0.4)
|
|
—
|
Loss on
disposal of property, plant and equipment, net
|
1.7
|
|
2.1
|
Other
non-cash items
|
2.1
|
|
0.2
|
Change in
operating assets and liabilities, net of acquisitions:
|
|
|
|
Accounts receivable
|
(11.9)
|
|
(9.7)
|
Inventories
|
(11.1)
|
|
3.2
|
Prepaid expenses and other current assets
|
(6.2)
|
|
(2.2)
|
Other assets
|
(0.7)
|
|
0.1
|
Accounts payable and accrued liabilities and other
liabilities
|
(10.2)
|
|
(14.7)
|
Net cash provided by operating activities from continuing
operations
|
23.6
|
|
28.7
|
Cash flows from
investing activities of continuing operations:
|
|
|
|
Acquisitions, net of cash received
|
(0.3)
|
|
—
|
Additions to property, plant and equipment
|
(38.6)
|
|
(27.0)
|
Additions to intangible assets
|
(2.5)
|
|
(2.3)
|
Proceeds from sale of property, plant and equipment
|
0.4
|
|
0.1
|
Other investing activities
|
0.5
|
|
—
|
Net cash used in investing activities from continuing
operations
|
(40.5)
|
|
(29.2)
|
Cash flows from
financing activities of continuing operations:
|
|
|
|
Payments of long-term debt
|
(4.5)
|
|
(3.4)
|
Issuance of common shares
|
1.2
|
|
1.0
|
Common shares repurchased and canceled
|
(1.8)
|
|
(3.1)
|
Financing fees
|
—
|
|
(0.7)
|
Dividends paid to common shareholders
|
(11.3)
|
|
(9.7)
|
Payment of deferred consideration for acquisitions
|
(0.1)
|
|
(1.7)
|
Other financing activities
|
3.9
|
|
5.2
|
Net cash used in financing activities from continuing
operations
|
(12.6)
|
|
(12.4)
|
Cash flows from
discontinued operations:
|
|
|
|
Operating activities of discontinued operations
|
—
|
|
0.8
|
Investing activities of discontinued operations
|
—
|
|
—
|
Financing activities of discontinued operations
|
—
|
|
—
|
Net cash provided by discontinued operations
|
—
|
|
0.8
|
Effect of exchange rate changes on cash
|
(0.9)
|
|
(0.8)
|
Net decrease in
cash, cash equivalents and restricted cash
|
(30.4)
|
|
(12.9)
|
Cash and cash
equivalents and restricted cash, beginning of period
|
128.4
|
|
115.1
|
Cash and cash
equivalents and restricted cash, end of period
|
$
98.0
|
|
$
102.2
|
|
|
|
|
PRIMO WATER
CORPORATION
|
|
|
|
|
|
|
EXHIBIT
4
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
(in millions of U.S.
dollars, except percentage amounts)
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended April 2, 2022
|
|
|
North
America
|
|
Rest of
World
|
|
All
Other
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
278.3
|
|
$
59.0
|
|
$
—
|
|
$
337.3
|
Water Refill/Water
Filtration
|
|
42.2
|
|
8.7
|
|
—
|
|
50.9
|
Other Water
|
|
34.0
|
|
16.4
|
|
—
|
|
50.4
|
Water
Dispensers
|
|
14.2
|
|
—
|
|
—
|
|
14.2
|
Other
|
|
28.4
|
|
44.9
|
|
—
|
|
73.3
|
Total
|
|
$
397.1
|
|
$
129.0
|
|
$
—
|
|
$
526.1
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
232.0
|
|
$
67.6
|
|
$
—
|
|
$
299.6
|
Gross margin
%
|
|
58.4
%
|
|
52.4
%
|
|
— %
|
|
56.9
%
|
Selling, general and
administrative expenses
|
|
$
199.7
|
|
$
69.4
|
|
$
9.2
|
|
$
278.3
|
SG&A % of
revenue
|
|
50.3
%
|
|
53.8
%
|
|
— %
|
|
52.9
%
|
Operating income
(loss)
|
|
$
28.3
|
|
$
(3.2)
|
|
$
(9.8)
|
|
$
15.3
|
Depreciation and
amortization
|
|
$
45.3
|
|
$
15.5
|
|
$
0.4
|
|
$
61.2
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended April 3, 2021
|
|
|
North
America
|
|
Rest of
World
|
|
All
Other
|
|
Total
|
Revenue,
net
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
238.8
|
|
$
48.8
|
|
$
—
|
|
$
287.6
|
Water Refill/Water
Filtration
|
|
45.1
|
|
7.9
|
|
—
|
|
53.0
|
Other Water
|
|
40.9
|
|
15.4
|
|
—
|
|
56.3
|
Water
Dispensers
|
|
15.0
|
|
—
|
|
—
|
|
15.0
|
Other
|
|
25.7
|
|
40.8
|
|
—
|
|
66.5
|
Total
|
|
$
365.5
|
|
$
112.9
|
|
$
—
|
|
$
478.4
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
204.5
|
|
$
60.0
|
|
$
—
|
|
$
264.5
|
Gross margin
%
|
|
56.0 %
|
|
53.1 %
|
|
— %
|
|
55.3 %
|
Selling, general and
administrative expenses
|
|
$
175.8
|
|
$
63.3
|
|
$
8.9
|
|
$
248.0
|
SG&A % of
revenue
|
|
48.1 %
|
|
56.1 %
|
|
— %
|
|
51.8 %
|
Operating income
(loss)
|
|
$
26.1
|
|
$
(3.6)
|
|
$
(9.4)
|
|
$
13.1
|
Depreciation and
amortization
|
|
$
37.8
|
|
$
14.9
|
|
$
0.4
|
|
$
53.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 April 2, 2022
|
|
North
America
|
|
Rest of
World
|
|
All
Other
|
|
Primo
|
Change in
revenue
|
$
31.6
|
|
$
16.1
|
|
$
—
|
|
$
47.7
|
Impact of foreign
exchange (a)
|
$
—
|
|
$
4.6
|
|
$
—
|
|
$
4.6
|
Change excluding
foreign exchange
|
$
31.6
|
|
$
20.7
|
|
$
—
|
|
$
52.3
|
Percentage change in
revenue
|
8.6 %
|
|
14.3 %
|
|
— %
|
|
10.0 %
|
Percentage change in
revenue excluding foreign exchange
|
8.6 %
|
|
18.3 %
|
|
— %
|
|
10.9 %
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended April 2, 2022
|
|
North
America
|
|
Rest of
World
|
|
All
Other
|
|
Primo
|
Change in gross
profit
|
$
27.5
|
|
$
7.6
|
|
$
—
|
|
$
35.1
|
Impact of foreign
exchange (a)
|
$
—
|
|
$
2.8
|
|
$
—
|
|
$
2.8
|
Change excluding
foreign exchange
|
$
27.5
|
|
$
10.4
|
|
$
—
|
|
$
37.9
|
Percentage change in
gross profit
|
13.4 %
|
|
12.7 %
|
|
— %
|
|
13.3 %
|
Percentage change in
gross profit excluding foreign exchange
|
13.4 %
|
|
17.3 %
|
|
— %
|
|
14.3 %
|
|
|
|
|
|
|
|
|
(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, except percentage amounts)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
April 2,
2022
|
|
April 3,
2021
|
|
|
|
|
Net
loss
|
$
(6.7)
|
|
$
(10.2)
|
Interest expense,
net
|
16.9
|
|
19.0
|
Income tax
expense
|
2.4
|
|
4.7
|
Depreciation and
amortization
|
61.2
|
|
53.1
|
EBITDA
|
$
73.8
|
|
$
66.6
|
|
|
|
|
Acquisition and
integration costs (a)
|
4.3
|
|
1.3
|
Share-based
compensation costs (b)
|
3.3
|
|
2.4
|
COVID-19 costs
(c)
|
—
|
|
0.7
|
Foreign exchange and
other losses (gains), net (d)
|
3.9
|
|
(0.1)
|
Loss on disposal of
property, plant and equipment, net (e)
|
1.7
|
|
2.1
|
Other adjustments, net
(f)
|
0.9
|
|
3.2
|
Adjusted
EBITDA
|
$
87.9
|
|
$
76.2
|
|
|
|
|
Revenue,
net
|
$
526.1
|
|
$
478.4
|
Adjusted EBITDA
margin %
|
16.7
%
|
|
15.9 %
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
Location in
Consolidated Statements of
Operations
|
April 2,
2022
|
|
April 3,
2021
|
|
|
(Unaudited)
|
(a) Acquisition and
integration costs
|
Acquisition and
integration expenses
|
$
4.3
|
|
$
1.3
|
(b) Share-based
compensation costs
|
Selling, general and
administrative expenses
|
3.3
|
|
2.4
|
(c) COVID-19
costs
|
Selling, general and
administrative expenses
|
—
|
|
0.7
|
(d) Foreign exchange
and other losses (gains), net
|
Other expense (income),
net
|
3.9
|
|
(0.1)
|
(e) Loss on disposal of
property, plant and equipment, net
|
Loss on disposal of
property, plant and equipment, net
|
1.7
|
|
2.1
|
(f) Other adjustments,
net
|
Other expense (income),
net
|
(1.3)
|
|
(0.3)
|
|
Selling, general and
administrative expenses
|
2.2
|
|
3.5
|
|
|
|
|
|
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
|
|
April 2,
2022
|
|
April 3,
2021
|
|
|
|
|
Net cash provided by
operating activities from continuing operations
|
$
23.6
|
|
$
28.7
|
Less: Additions to property, plant, and
equipment
|
(38.6)
|
|
(27.0)
|
Less: Additions to intangible assets (a)
|
(2.5)
|
|
(2.3)
|
Free Cash
Flow
|
$
(17.5)
|
|
$
(0.6)
|
|
|
|
|
Acquisition and integration cash costs
|
5.0
|
|
4.9
|
COVID-19
related cash costs
|
—
|
|
1.0
|
Deferred
payroll tax related cash costs - government programs
|
—
|
|
0.4
|
Adjusted Free Cash
Flow
|
$
(12.5)
|
|
$
5.7
|
|
|
|
|
(a) Prior period has
been recast to include additions to intangible assets
|
|
|
|
|
|
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
|
|
|
April 2,
2022
|
|
April 3,
2021
|
|
Net loss (as
reported)
|
$
(6.7)
|
|
$
(10.2)
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Amortization expense of
customer lists
|
12.9
|
|
12.2
|
|
Acquisition and
integration costs
|
4.3
|
|
1.3
|
|
Share-based
compensation costs
|
3.3
|
|
2.4
|
|
COVID-19
costs
|
—
|
|
0.7
|
|
Foreign exchange and
other losses (gains), net
|
3.9
|
|
(0.1)
|
|
Other adjustments,
net
|
0.9
|
|
3.2
|
|
Tax impact of
adjustments (a)
|
(4.7)
|
|
(0.2)
|
|
Adjusted net
income
|
$
13.9
|
|
$
9.3
|
|
|
|
|
|
|
Earnings Per Share
(as reported)
|
|
|
|
|
Net loss
|
$
(6.7)
|
|
$
(10.2)
|
|
|
|
|
|
|
Basic EPS
|
$
(0.04)
|
|
$
(0.06)
|
|
Diluted EPS
|
$
(0.04)
|
|
$
(0.06)
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
|
Basic
|
160,928
|
|
160,634
|
|
Diluted
|
160,928
|
|
160,634
|
|
|
|
|
|
|
Adjusted Earnings
Per Share (Non-GAAP)
|
|
|
|
|
Adjusted net income
(Non-GAAP)
|
$
13.9
|
|
$
9.3
|
|
|
|
|
|
|
Adjusted diluted EPS
(Non-GAAP)
|
$
0.09
|
|
$
0.06
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding (in thousands) (Non-GAAP)
(b)
|
162,005
|
|
162,521
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
(b) Includes the
impact of dilutive securities of 1,077 and 1,887 for the three
months ended April 2, 2022 and April 3, 2021, respectively.
These dilutive securities were excluded from GAAP diluted weighted
average common shares outstanding due to net loss from continuing
operations reported in those periods.
|
|
|
|
PRIMO WATER
CORPORATION – RUSSIA BUSINESS
|
|
EXHIBIT
9
|
SUPPLEMENTARY
INFORMATION-NON-GAAP-FY 2021 ADJUSTED EBITDA
|
(in millions of U.S.
dollars)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
FY
2021
|
|
|
|
|
|
Net
Income
|
|
$
1.0
|
|
Income tax
expense
|
|
0.2
|
|
Depreciation and amortization
|
|
1.9
|
|
Other
adjustments, net
|
|
0.1
|
|
Adjusted
EBITDA
|
|
$
3.2
|
|
|
|
|
|
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SOURCE Primo Water Corporation