- Delivered high end of Q2 Revenue and high end of Adjusted
EBITDA guidance
- Increased Revenue 4% to $593.3
million
- Declares quarterly dividend of $0.08 per common share, a 14% increase over last
year's dividend
- Authorizes new $50 million
share repurchase program
- Increases full-year 2023 Revenue, Adjusted EBITDA and
Adjusted Free Cash Flow Guidance
TAMPA,
Fla., Aug. 10, 2023 /CNW/ - Primo Water
Corporation (NYSE: PRMW) (TSX: PRMW) (the "Company" or "Primo
Water"), a leading provider of sustainable drinking water
solutions in North America and
Europe, today announced its
results for the second quarter ended July 1,
2023.
(Unless stated otherwise, all second quarter 2023 comparisons
are relative to the second quarter of 2022; all information is in
U.S. dollars. Non-GAAP reconciliations presented on the exhibits to
this press release)
SECOND QUARTER HIGHLIGHTS
- Revenue increased 4% to $593
million compared to $571
million driven by revenue growth of 7% in Water Direct /
Water Exchange and 18% in Water Refill / Water Filtration,
partially offset by the exit from our North America single use bottled water retail
business and the exit from our business in Russia.
- Reported net income and net income per diluted share were
$21 million and $0.13, respectively, compared to reported net
loss and net loss per diluted share of $23
million and $0.14,
respectively. Adjusted net income and adjusted net income per
diluted share were $39 million and
$0.24, respectively, compared to
$33 million and $0.21, respectively. Gross margin increased 390
bps to 62.1% compared to 58.2%.
- Adjusted EBITDA increased 13% to $122
million and Adjusted EBITDA margin increased 160 bps to
20.5%.
- The Company increases its full year 2023 revenue target to
between $2.32 billion and
$2.36 billion and increases its full
year 2023 Adjusted EBITDA to between $460
million and $480 million.
Adjusted Free Cash Flow is forecasted to be approximately
$150 million, an increase of
$10 million.
- The Company reaffirms its 2024 outlook for high single-digit
organic revenue growth and 2024 Adjusted EBITDA approaching
$530 million.
|
For the Three Months
Ended
|
|
(in millions of U.S.
dollars, except per share amounts, percentages and
bps)
|
July 1,
2023
|
|
July 2,
2022
|
|
Y/Y
Change
|
|
Revenue, net
(1)
|
$
593.3
|
|
$
571.4
|
|
4 %
|
|
Net income
(loss)
|
$
21.3
|
|
$
(22.5)
|
|
$
43.8
|
|
Net income (loss) per
diluted share
|
$
0.13
|
|
$
(0.14)
|
|
$
0.27
|
|
Adjusted net
income
|
$
38.8
|
|
$
33.3
|
|
$
5.5
|
|
Adjusted net income per
diluted share
|
$
0.24
|
|
$
0.21
|
|
$
0.03
|
|
Adjusted
EBITDA
|
$
121.6
|
|
$
108.0
|
|
13 %
|
|
Adjusted EBITDA margin
%
|
20.5 %
|
|
18.9 %
|
|
160 bps
|
|
1Reported
revenue in Q2 2022 includes $14.4 million of revenues associated
with our North American single use bottled water retail business
and $3.7 million of revenues associated with our Russia business;
there is no revenue attributable to these businesses in Q2 2023, as
we exited these businesses in 2022.
|
"We once again delivered strong revenue and earnings growth, driven
by improved route density, network efficiencies and optimization,
the benefits of our investments and pricing. I am proud of
the efforts of our team and their focus on improving the customer
experience," said Tom Harrington,
Chief Executive Officer.
"Our second quarter performance gives us confidence to increase
our 2023 outlook to between $2.32
billion and $2.36 billion of
revenue and Adjusted EBITDA to between $460
million and $480 million.
Adjusted Free Cash Flow is now forecasted to increase to
approximately $150 million, an
increase of $10 million. We are also
reaffirming our 2024 outlook for high single digit organic revenue
growth and Adjusted EBITDA approaching $530
million," said Mr. Harrington.
OUTLOOK
Primo Water is targeting the
following results from continuing operations for the third quarter
and full year 2023:
|
Q3 2023
Range
|
FY 2023
Range
|
|
($ in
millions)
|
Low
|
High
|
Low
|
High
|
|
Revenue
|
$612
|
$632
|
$2,320
|
$2,360
|
|
Adjusted
EBITDA
|
$129
|
$139
|
$460
|
$480
|
|
Cash Taxes
|
|
|
~ $25
|
|
Interest
|
|
|
$70
|
$75
|
|
Cap-Ex
|
|
|
~ $200
|
|
Adj. Free Cash
Flow
|
|
|
~ $150
|
SECOND QUARTER 2023 RESULTS CONFERENCE CALL
Primo Water will host a
conference call, to be simultaneously webcast, on Thursday, August 10, 2023, 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: 73605034
This is a live, listen-only dial-in telephone line.
A slide presentation 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.
SECOND QUARTER GLOBAL PERFORMANCE
- Revenue increased 4% to $593
million compared to $571
million. The increase was driven by revenue growth of 7% 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, partially offset by the exits from our North America single use bottled water retail
business and our business in Russia in the prior year. Revenue growth by
channel is tabulated below:
|
For the Three Months
Ended
|
|
(in millions of U.S.
dollars)
|
July 1,
2023
|
|
July 2,
2022
|
|
Change
|
|
%
Change
|
|
Revenue, net
(2)
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
$
414.1
|
|
$
386.5
|
|
$
27.6
|
|
7 %
|
|
Water Refill/Water
Filtration
|
66.1
|
|
56.2
|
|
$
9.9
|
|
18 %
|
|
Other Water
|
31.9
|
|
44.1
|
|
$
(12.2)
|
|
(28) %
|
|
Water
Dispensers
|
17.1
|
|
18.5
|
|
$
(1.4)
|
|
(8) %
|
|
Other
|
64.1
|
|
66.1
|
|
$
(2.0)
|
|
(3) %
|
|
Revenue, net as
reported
|
$
593.3
|
|
$
571.4
|
|
$
21.9
|
|
4 %
|
|
Foreign exchange
impact
|
2.4
|
|
—
|
|
$
2.4
|
|
n/a
|
|
Revenue excluding
foreign exchange impact
|
$
595.7
|
|
$
571.4
|
|
$
24.3
|
|
4 %
|
|
2Reported
revenue in Q2 2022 includes $14.4 million of revenues associated
with our North American single use bottled water retail business
and $3.7 million of revenues associated with our Russia business;
there is no revenue attributable to these businesses in Q2 2023, as
we exited these businesses in 2022.
|
- Gross profit increased 11% to $368
million compared to $332
million. Gross margin increased 390 bps to 62.1% compared to
58.2%, driven by pricing initiatives, increased demand, and the
exit from the single-use retail bottled water business in
North America.
- SG&A expenses increased 9% to $318
million compared to $292
million. The increase was driven by higher selling and
operating costs that supported volume and revenue growth related
primarily to labor costs increases and an increase in professional
fees.
- Reported net income and net income per diluted share were
$21 million and $0.13, respectively, compared to reported net
loss and net loss per diluted share of $23
million and $0.14,
respectively. Adjusted net income and adjusted net income per
diluted share were $39 million and
$0.24, respectively, compared to
$33 million and $0.21 in the prior year.
- Adjusted EBITDA increased 13% to $122
million compared to $108
million, driven primarily by pricing initiatives, customer
demand and effective expense management. Adjusted EBITDA margin was
20.5% for the quarter, compared to 18.9%.
- Net cash provided by operating activities of $77 million, less $39
million of capital expenditures and additions to intangible
assets, resulted in $38 million of
free cash flow, or $41 million of
adjusted free cash flow (adjusting for the items set forth on
Exhibit 7), compared to adjusted free cash flow of $21 million in the prior year.
SECOND QUARTER REPORTING SEGMENT PERFORMANCE
North
America
- Revenue increased 3% to $451
million driven by revenue growth of 7% in Water Direct /
Water Exchange, and 17% in Water Refill / Water Filtration driven
by pricing initiatives, partially offset by the exit from our
single use bottled water retail business.
|
For the Three Months
Ended
|
|
(in millions of U.S.
dollars)
|
July 1,
2023
|
|
July 2,
2022
|
|
Change
|
|
%
Change
|
|
Revenue, net
(3)
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
$
342.9
|
|
$
321.1
|
|
$
21.8
|
|
7 %
|
|
Water Refill/Water
Filtration
|
55.4
|
|
47.3
|
|
$
8.1
|
|
17 %
|
|
Other Water
|
11.9
|
|
22.2
|
|
$
(10.3)
|
|
(46) %
|
|
Water
Dispensers
|
16.7
|
|
18.5
|
|
$
(1.8)
|
|
(10) %
|
|
Other
|
23.6
|
|
27.6
|
|
$
(4.0)
|
|
(14) %
|
|
Revenue, net as
reported
|
$
450.5
|
|
$
436.7
|
|
$
13.8
|
|
3 %
|
|
Foreign exchange
impact
|
0.9
|
|
—
|
|
$
0.9
|
|
n/a
|
|
Revenue excluding
foreign exchange impact
|
$
451.4
|
|
$
436.7
|
|
$
14.7
|
|
3 %
|
|
3Reported
revenue in Q2 2022 includes $14.4 million of revenues associated
with our North American single use bottled water retail business;
there is no revenue attributable to this business in Q2 2023, as we
exited this business in the second quarter of 2022.
|
Europe
- Revenue increased 12% to $78
million (increased 9% excluding the impact of foreign
exchange) driven by pricing initiatives, increased demand for
products and services from residential and business customers, and
favorable impact of foreign exchange rates, partially offset by the
exit from our business in Russia.
|
For the Three Months
Ended
|
|
(in millions of U.S.
dollars)
|
July 1,
2023
|
|
July 2,
2022
|
|
Change
|
|
%
Change
|
|
Revenue, net
(4)
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
$
60.2
|
|
$
53.7
|
|
$
6.5
|
|
12 %
|
|
Water Refill/Water
Filtration
|
9.9
|
|
8.2
|
|
$
1.7
|
|
21 %
|
|
Other Water
|
0.3
|
|
0.4
|
|
$
(0.1)
|
|
(25) %
|
|
Water
Dispensers
|
0.4
|
|
—
|
|
$
0.4
|
|
100 %
|
|
Other
|
7.2
|
|
7.6
|
|
$
(0.4)
|
|
(5) %
|
|
Revenue, net as
reported
|
$
78.0
|
|
$
69.9
|
|
$
8.1
|
|
12 %
|
|
Foreign exchange
impact
|
(1.9)
|
|
—
|
|
$
(1.9)
|
|
n/a
|
|
Revenue excluding
foreign exchange impact
|
$
76.1
|
|
$
69.9
|
|
$
6.2
|
|
9 %
|
|
4Reported
revenue in the three months ended Q2 2022 includes $3.7 million of
revenues associated with our Russia business; there is no revenue
attributable to this business in the three months ended Q2 2023, as
we exited this business in the third quarter of 2022.
|
QUARTERLY DIVIDEND
Primo Water announced that its
Board of Directors declared a dividend of US$0.08 per share on common shares, payable in
cash on September 7, 2023 to shareowners of record at the
close of business on August 24, 2023.
SHARE REPURCHASE PROGRAM
Primo Water also announced that
its Board of Directors authorized a new $50
million share repurchase program, which replaces the
previously authorized share repurchase program that expires on
August 14, 2023. Under the program,
the Company's common shares may be repurchased periodically in open
market or privately negotiated transactions through the facilities
of the NYSE.
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
pure-play water solutions provider in North America and Europe and generated approximately
$2.2 billion in annual revenue in
2022. Primo Water 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 10,300 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 across its 21-country footprint 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 its 21-country footprint.
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 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 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 excludes from GAAP revenue the
impact of foreign exchange to separate its impact from Primo Water's results of operations.
Primo Water 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
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 Q3 2023 and
full year 2023 Adjusted EBITDA, 2024 Adjusted EBITDA, 2024 organic
revenue growth and 2023 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 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
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. 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 third quarter and full
year 2023 revenue and Adjusted EBITDA and Primo Water's outlook for 2024), 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; 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
transactions 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)
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
|
Revenue,
net
|
$
593.3
|
|
$
571.4
|
|
$
1,139.8
|
|
$
1,097.5
|
|
Cost of
sales
|
225.0
|
|
239.1
|
|
443.2
|
|
465.6
|
|
Gross
profit
|
368.3
|
|
332.3
|
|
696.6
|
|
631.9
|
|
Selling, general and
administrative expenses
|
317.7
|
|
291.6
|
|
621.2
|
|
569.9
|
|
Loss on disposal of
property, plant and equipment, net
|
1.2
|
|
0.1
|
|
2.5
|
|
1.8
|
|
Acquisition and
integration expenses
|
1.8
|
|
4.9
|
|
3.8
|
|
9.2
|
|
Impairment
charges
|
—
|
|
29.1
|
|
—
|
|
29.1
|
|
Operating
income
|
47.6
|
|
6.6
|
|
69.1
|
|
21.9
|
|
Other (income) expense,
net
|
(4.5)
|
|
10.7
|
|
(10.8)
|
|
13.4
|
|
Interest expense,
net
|
19.8
|
|
17.0
|
|
38.6
|
|
33.9
|
|
Income (loss) before
income taxes
|
32.3
|
|
(21.1)
|
|
41.3
|
|
(25.4)
|
|
Income tax
expense
|
11.0
|
|
1.4
|
|
14.2
|
|
3.8
|
|
Net income
(loss)
|
$
21.3
|
|
$
(22.5)
|
|
$
27.1
|
|
$
(29.2)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.13
|
|
$
(0.14)
|
|
$
0.17
|
|
$
(0.18)
|
|
Diluted
|
$
0.13
|
|
$
(0.14)
|
|
$
0.17
|
|
$
(0.18)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
159,196
|
|
161,149
|
|
159,465
|
|
161,038
|
|
Diluted
|
159,900
|
|
161,149
|
|
160,332
|
|
161,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRIMO WATER
CORPORATION
|
|
|
EXHIBIT
2
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
(in millions of U.S.
dollars, except share amounts)
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
July 1,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
86.8
|
|
$
122.6
|
|
Accounts receivable,
net of allowance of $22.1 ($20.6 as of December 31,2022)
|
293.2
|
|
258.6
|
|
Inventories
|
105.7
|
|
112.1
|
|
Prepaid expenses and
other current assets
|
51.5
|
|
44.7
|
|
Total current
assets
|
537.2
|
|
538.0
|
|
Property, plant and
equipment, net
|
712.8
|
|
714.4
|
|
Operating lease
right-of-use-assets
|
197.3
|
|
198.6
|
|
Goodwill
|
1,300.2
|
|
1,293.0
|
|
Intangible assets,
net
|
886.2
|
|
894.7
|
|
Other long-term assets,
net
|
25.4
|
|
28.3
|
|
Total
assets
|
$
3,659.1
|
|
$
3,667.0
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
borrowings
|
$
231.0
|
|
$
212.3
|
|
Current maturities of
long-term debt
|
16.5
|
|
17.5
|
|
Accounts payable and
accrued liabilities
|
407.0
|
|
425.1
|
|
Current operating lease
obligations
|
36.2
|
|
35.7
|
|
Total current
liabilities
|
690.7
|
|
690.6
|
|
Long-term
debt
|
1,289.9
|
|
1,283.8
|
|
Operating lease
obligations
|
172.1
|
|
174.5
|
|
Deferred tax
liabilities
|
177.4
|
|
170.0
|
|
Other long-term
liabilities
|
63.2
|
|
65.2
|
|
Total
liabilities
|
2,393.3
|
|
2,384.1
|
|
Equity
|
|
|
|
|
Common shares, no par
value 159,240,481- (December 31, 2022 - 159,752,299) shares
issued
|
1,283.1
|
|
1,283.2
|
|
Additional
paid-in-capital
|
88.4
|
|
91.3
|
|
Accumulated
deficit
|
(16.9)
|
|
(9.4)
|
|
Accumulated other
comprehensive loss
|
(88.8)
|
|
(82.2)
|
|
Total Primo Water
Corporation equity
|
1,265.8
|
|
1,282.9
|
|
Total liabilities
and equity
|
$
3,659.1
|
|
$
3,667.0
|
|
PRIMO WATER
CORPORATION
|
|
|
|
|
|
|
EXHIBIT
3
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
(in millions of U.S.
dollars)
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
21.3
|
|
$
(22.5)
|
|
$
27.1
|
|
$
(29.2)
|
|
Adjustments to
reconcile net income (loss) to cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
62.9
|
|
60.2
|
|
125.3
|
|
121.4
|
|
Amortization of
financing fees
|
0.9
|
|
0.8
|
|
1.7
|
|
1.7
|
|
Share-based
compensation expense
|
3.0
|
|
4.2
|
|
5.3
|
|
7.5
|
|
Provision (benefit) for
deferred income taxes
|
5.6
|
|
(0.1)
|
|
6.4
|
|
1.5
|
|
Impairment
charges
|
—
|
|
29.1
|
|
—
|
|
29.1
|
|
Loss on disposal of
property, plant and equipment, net
|
1.2
|
|
0.1
|
|
2.5
|
|
1.8
|
|
Other non-cash
items
|
(5.3)
|
|
11.0
|
|
(12.0)
|
|
12.7
|
|
Change in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(30.6)
|
|
(21.3)
|
|
(33.5)
|
|
(33.2)
|
|
Inventories
|
(2.6)
|
|
(8.0)
|
|
(0.5)
|
|
(19.1)
|
|
Prepaid expenses and
other current assets
|
4.1
|
|
1.0
|
|
(0.8)
|
|
(5.2)
|
|
Other
assets
|
(0.2)
|
|
0.7
|
|
(0.3)
|
|
—
|
|
Accounts payable and
accrued liabilities and other liabilities
|
16.5
|
|
11.5
|
|
(10.1)
|
|
1.3
|
|
Net cash provided by
operating activities
|
76.8
|
|
66.7
|
|
111.1
|
|
90.3
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Acquisitions, net of
cash received
|
(15.6)
|
|
(7.1)
|
|
(23.1)
|
|
(7.4)
|
|
Additions to property,
plant and equipment
|
(36.0)
|
|
(46.6)
|
|
(89.7)
|
|
(85.2)
|
|
Additions to
intangible assets
|
(2.7)
|
|
(2.4)
|
|
(5.4)
|
|
(4.9)
|
|
Proceeds from sale of
property, plant and equipment
|
0.3
|
|
0.6
|
|
0.5
|
|
1.0
|
|
Proceeds from sale of
business, net of cash sold
|
0.5
|
|
—
|
|
0.5
|
|
—
|
|
Other investing
activities
|
1.1
|
|
(0.1)
|
|
3.3
|
|
0.4
|
|
Net cash used in
investing activities
|
(52.4)
|
|
(55.6)
|
|
(113.9)
|
|
(96.1)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Payments of long-term
debt
|
(4.8)
|
|
(5.2)
|
|
(9.8)
|
|
(9.7)
|
|
Proceeds from
short-term borrowings
|
43.0
|
|
10.0
|
|
104.0
|
|
10.0
|
|
Payments on short-term
borrowings
|
(59.8)
|
|
—
|
|
(93.0)
|
|
—
|
|
Issuance of common
shares
|
0.4
|
|
0.4
|
|
4.7
|
|
1.6
|
|
Common shares
repurchased and canceled
|
(2.5)
|
|
(0.2)
|
|
(21.8)
|
|
(2.0)
|
|
Dividends paid to
common shareholders
|
(13.1)
|
|
(11.6)
|
|
(25.9)
|
|
(22.9)
|
|
Payment of deferred
consideration for acquisitions
|
(0.2)
|
|
—
|
|
(1.0)
|
|
(0.1)
|
|
Other financing
activities
|
2.3
|
|
0.7
|
|
8.4
|
|
4.6
|
|
Net cash used in
financing activities
|
(34.7)
|
|
(5.9)
|
|
(34.4)
|
|
(18.5)
|
|
Effect of exchange
rate changes on cash
|
0.6
|
|
(1.0)
|
|
1.4
|
|
(1.9)
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
(9.7)
|
|
4.2
|
|
(35.8)
|
|
(26.2)
|
|
Cash and cash
equivalents and restricted cash, beginning of period
|
96.5
|
|
98.0
|
|
122.6
|
|
128.4
|
|
Cash and cash
equivalents and restricted cash, end of period
|
$
86.8
|
|
$
102.2
|
|
$
86.8
|
|
$
102.2
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
86.8
|
|
$
98.5
|
|
$
86.8
|
|
$
98.5
|
|
Cash included in
prepaid expenses and other current assets
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Total
|
$
86.8
|
|
$
102.2
|
|
$
86.8
|
|
$
102.2
|
|
PRIMO WATER
CORPORATION
|
|
|
|
|
|
|
|
EXHIBIT
4
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
(in millions of U.S.
dollars, except percentage amounts)
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended July 1, 2023
|
|
|
North
America
|
|
Europe
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
342.9
|
|
$
60.2
|
|
$
11.0
|
|
$
414.1
|
|
Water Refill/Water
Filtration
|
|
55.4
|
|
9.9
|
|
0.8
|
|
66.1
|
|
Other Water
|
|
11.9
|
|
0.3
|
|
19.7
|
|
31.9
|
|
Water
Dispensers
|
|
16.7
|
|
0.4
|
|
—
|
|
17.1
|
|
Other
|
|
23.6
|
|
7.2
|
|
33.3
|
|
64.1
|
|
Total
|
|
$
450.5
|
|
$
78.0
|
|
$
64.8
|
|
$
593.3
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
290.7
|
|
$
53.4
|
|
$
24.2
|
|
$
368.3
|
|
Gross margin
%
|
|
64.5 %
|
|
68.5 %
|
|
37.3 %
|
|
62.1 %
|
|
Selling, general and
administrative expenses
|
|
$
231.0
|
|
$
46.0
|
|
$
40.7
|
|
$
317.7
|
|
SG&A % of
revenue
|
|
51.3 %
|
|
59.0 %
|
|
62.8 %
|
|
53.5 %
|
|
Operating income
(loss)
|
|
$
57.3
|
|
$
7.1
|
|
$
(16.8)
|
|
$
47.6
|
|
Depreciation and
amortization
|
|
$
46.8
|
|
$
10.2
|
|
$
5.9
|
|
$
62.9
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended July 2, 2022
|
|
|
North
America
|
|
Europe
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
321.1
|
|
$
53.7
|
|
$
11.7
|
|
$
386.5
|
|
Water Refill/Water
Filtration
|
|
47.3
|
|
8.2
|
|
0.7
|
|
56.2
|
|
Other Water
|
|
22.2
|
|
0.4
|
|
21.5
|
|
44.1
|
|
Water
Dispensers
|
|
18.5
|
|
—
|
|
—
|
|
18.5
|
|
Other
|
|
27.6
|
|
7.6
|
|
30.9
|
|
66.1
|
|
Total
|
|
$
436.7
|
|
$
69.9
|
|
$
64.8
|
|
$
571.4
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
260.4
|
|
$
46.8
|
|
$
25.1
|
|
$
332.3
|
|
Gross margin
%
|
|
59.6 %
|
|
67.0 %
|
|
38.7 %
|
|
58.2 %
|
|
Selling, general and
administrative expenses
|
|
$
208.6
|
|
$
45.9
|
|
$
37.1
|
|
$
291.6
|
|
SG&A % of
revenue
|
|
47.8 %
|
|
65.7 %
|
|
57.3 %
|
|
51.0 %
|
|
Operating income
(loss)
|
|
$
48.3
|
|
$
(29.1)
|
|
$
(12.6)
|
|
$
6.6
|
|
Depreciation and
amortization
|
|
$
44.3
|
|
$
10.1
|
|
$
5.8
|
|
$
60.2
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended July 1, 2023
|
|
|
North
America
|
|
Europe
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
655.3
|
|
$
113.2
|
|
$
21.4
|
|
$
789.9
|
|
Water Refill/Water
Filtration
|
|
107.6
|
|
18.7
|
|
1.4
|
|
127.7
|
|
Other Water
|
|
23.2
|
|
0.5
|
|
35.4
|
|
59.1
|
|
Water
Dispensers
|
|
29.4
|
|
0.5
|
|
—
|
|
29.9
|
|
Other
|
|
47.3
|
|
14.5
|
|
71.4
|
|
133.2
|
|
Total
|
|
$
862.8
|
|
$
147.4
|
|
$
129.6
|
|
$ 1,139.8
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
549.5
|
|
$
100.9
|
|
$
46.2
|
|
$
696.6
|
|
Gross Margin
%
|
|
63.7 %
|
|
68.5 %
|
|
35.6 %
|
|
61.1 %
|
|
Selling, general and
administrative expenses
|
|
$
452.1
|
|
$
90.3
|
|
$
78.8
|
|
$
621.2
|
|
SG&A % of
Revenue
|
|
52.4 %
|
|
61.3 %
|
|
60.8 %
|
|
54.5 %
|
|
Operating income
(loss)
|
|
$
92.0
|
|
$
10.0
|
|
$
(32.9)
|
|
$
69.1
|
|
Depreciation and
amortization
|
|
$
93.6
|
|
$
19.8
|
|
$
11.9
|
|
$
125.3
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended July 2, 2022
|
|
|
North
America
|
|
Europe
|
|
Other
|
|
Total
|
|
Revenue,
net
|
|
|
|
|
|
|
|
|
|
Water Direct/Water
Exchange
|
|
$
599.4
|
|
$
101.9
|
|
$
22.5
|
|
$
723.8
|
|
Water Refill/Water
Filtration
|
|
89.5
|
|
16.4
|
|
1.2
|
|
107.1
|
|
Other Water
|
|
56.2
|
|
0.8
|
|
37.5
|
|
94.5
|
|
Water
Dispensers
|
|
32.7
|
|
—
|
|
—
|
|
32.7
|
|
Other
|
|
56.0
|
|
15.1
|
|
68.3
|
|
139.4
|
|
Total
|
|
$
833.8
|
|
$
134.2
|
|
$
129.5
|
|
$ 1,097.5
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
492.4
|
|
$
90.6
|
|
$
48.9
|
|
$
631.9
|
|
Gross margin
%
|
|
59.1 %
|
|
67.5 %
|
|
37.8 %
|
|
57.6 %
|
|
Selling, general and
administrative expenses
|
|
$
408.3
|
|
$
92.1
|
|
$
69.5
|
|
$
569.9
|
|
SG&A % of
revenue
|
|
49.0 %
|
|
68.6 %
|
|
53.7 %
|
|
51.9 %
|
|
Operating income
(loss)
|
|
$
76.6
|
|
$
(32.7)
|
|
$
(22.0)
|
|
$
21.9
|
|
Depreciation and
amortization
|
|
$
89.6
|
|
$
19.9
|
|
$
11.9
|
|
$
121.4
|
|
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 July 1, 2023
|
|
North
America
|
|
Europe
|
|
Other
|
|
Primo
|
|
Change in
revenue
|
$
13.8
|
|
$
8.1
|
|
$
—
|
|
$
21.9
|
|
Impact of foreign
exchange (a)
|
0.9
|
|
(1.9)
|
|
3.4
|
|
2.4
|
|
Change excluding
foreign exchange
|
$
14.7
|
|
$
6.2
|
|
$
3.4
|
|
$
24.3
|
|
Percentage change in
revenue
|
3.2 %
|
|
11.6 %
|
|
— %
|
|
3.8 %
|
|
Percentage change in
revenue excluding foreign exchange
|
3.4 %
|
|
8.9 %
|
|
5.2 %
|
|
4.3 %
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended July 1, 2023
|
|
North
America
|
|
Europe
|
|
Other
|
|
Primo
|
|
Change in
revenue
|
$
29.0
|
|
$
13.2
|
|
$
0.1
|
|
$
42.3
|
|
Impact of foreign
exchange (a)
|
2.0
|
|
2.3
|
|
10.2
|
|
14.5
|
|
Change excluding
foreign exchange
|
$
31.0
|
|
$
15.5
|
|
$
10.3
|
|
$
56.8
|
|
Percentage change in
revenue
|
3.5 %
|
|
9.8 %
|
|
0.1 %
|
|
3.9 %
|
|
Percentage change in
revenue excluding foreign exchange
|
3.7 %
|
|
11.5 %
|
|
8.0 %
|
|
5.2 %
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended July 1, 2023
|
|
North
America
|
|
Europe
|
|
Other
|
|
Primo
|
|
Change in gross
profit
|
$
30.3
|
|
$
6.6
|
|
$
(0.9)
|
|
$
36.0
|
|
Impact of foreign
exchange (a)
|
0.5
|
|
(1.4)
|
|
1.8
|
|
0.9
|
|
Change excluding
foreign exchange
|
$
30.8
|
|
$
5.2
|
|
$
0.9
|
|
$
36.9
|
|
Percentage change in
gross profit
|
11.6 %
|
|
14.1 %
|
|
(3.6) %
|
|
10.8 %
|
|
Percentage change in
gross profit excluding foreign exchange
|
11.8 %
|
|
11.1 %
|
|
3.6 %
|
|
11.1 %
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended July 1, 2023
|
|
North
America
|
|
Europe
|
|
Other
|
|
Primo
|
|
Change in gross
profit
|
$
57.1
|
|
$
10.3
|
|
$
(2.7)
|
|
$
64.7
|
|
Impact of foreign
exchange (a)
|
1.2
|
|
1.3
|
|
4.0
|
|
6.5
|
|
Change excluding
foreign exchange
|
$
58.3
|
|
$
11.6
|
|
$
1.3
|
|
$
71.2
|
|
Percentage change in
gross profit
|
11.6 %
|
|
11.4 %
|
|
(5.5) %
|
|
10.2 %
|
|
Percentage change in
gross profit excluding foreign exchange
|
11.8 %
|
|
12.8 %
|
|
2.7 %
|
|
11.3 %
|
|
|
|
|
|
|
|
|
|
(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
|
|
For the Six Months
Ended
|
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
21.3
|
|
$
(22.5)
|
|
$
27.1
|
|
$
(29.2)
|
|
Interest expense,
net
|
19.8
|
|
17.0
|
|
38.6
|
|
33.9
|
|
Income tax
expense
|
11.0
|
|
1.4
|
|
14.2
|
|
3.8
|
|
Depreciation and
amortization
|
62.9
|
|
60.2
|
|
125.3
|
|
121.4
|
|
EBITDA
|
$
115.0
|
|
$
56.1
|
|
$
205.2
|
|
$
129.9
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs (a)
|
1.8
|
|
4.9
|
|
3.8
|
|
9.2
|
|
Share-based
compensation costs (b)
|
3.0
|
|
4.2
|
|
5.3
|
|
7.5
|
|
Impairment charges
(c)
|
—
|
|
29.1
|
|
—
|
|
29.1
|
|
Foreign exchange and
other (gains) losses, net (d)
|
(5.0)
|
|
11.5
|
|
(10.9)
|
|
15.4
|
|
Loss on disposal of
property, plant and equipment, net (e)
|
1.2
|
|
0.1
|
|
2.5
|
|
1.8
|
|
Other adjustments, net
(f)
|
5.6
|
|
2.1
|
|
10.6
|
|
3.0
|
|
Adjusted
EBITDA
|
$
121.6
|
|
$
108.0
|
|
$
216.5
|
|
$
195.9
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$
593.3
|
|
$
571.4
|
|
$
1,139.8
|
|
$ 1,097.5
|
|
Adjusted EBITDA
margin %
|
20.5 %
|
|
18.9 %
|
|
19.0 %
|
|
17.8 %
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
Location in
Consolidated
Statements of
Operations
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(a) Acquisition and
integration costs
|
Acquisition and
integration expenses
|
$
1.8
|
|
$
4.9
|
|
$
3.8
|
|
$
9.2
|
|
(b) Share-based
compensation costs
|
Selling, general and
administrative expenses
|
3.0
|
|
4.2
|
|
5.3
|
|
7.5
|
|
(c) Impairment
charges
|
Impairment
charges
|
—
|
|
29.1
|
|
—
|
|
29.1
|
|
(d) Foreign exchange
and other (gains) losses, net
|
Other (income) expense,
net
|
(5.0)
|
|
11.5
|
|
(10.9)
|
|
15.4
|
|
(e) Loss on disposal of
property, plant and equipment, net
|
Loss on disposal of
property, plant and equipment, net
|
1.2
|
|
0.1
|
|
2.5
|
|
1.8
|
|
(f) Other adjustments,
net
|
Other (income) expense,
net
|
(0.3)
|
|
(0.4)
|
|
(0.7)
|
|
(1.7)
|
|
Selling, general and
administrative expenses
|
5.9
|
|
2.5
|
|
11.3
|
|
4.7
|
|
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
|
|
July 1,
2023
|
|
July 2,
2022
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
76.8
|
|
$
66.7
|
|
Less: Additions
to property, plant, and equipment
|
(36.0)
|
|
(46.6)
|
|
Less: Additions
to intangible assets
|
(2.7)
|
|
(2.4)
|
|
Free Cash
Flow
|
$
38.1
|
|
$
17.7
|
|
|
|
|
|
Acquisition and
integration cash costs
|
1.4
|
|
3.1
|
|
Cash costs related to
additions to property, plant and equipment for integration of
acquired entities
|
0.1
|
|
—
|
|
Cash taxes paid for
property sales
|
0.8
|
|
—
|
|
Tariffs refunds related
to property, plant, and equipment
|
1.0
|
|
—
|
|
Adjusted Free Cash
Flow
|
$
41.4
|
|
$
20.8
|
|
|
|
|
|
For the Six Months
Ended
|
|
July 1,
2023
|
|
July 2,
2022
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
111.1
|
|
$
90.3
|
|
Less: Additions
to property, plant, and equipment
|
(89.7)
|
|
(85.2)
|
|
Less: Additions
to intangible assets
|
(5.4)
|
|
(4.9)
|
|
Free Cash
Flow
|
$
16.0
|
|
$
0.2
|
|
|
|
|
|
Acquisition and
integration cash costs
|
4.0
|
|
8.1
|
|
Cash costs related to
additions to property, plant and equipment for integration of
acquired entities
|
0.2
|
|
—
|
|
Cash taxes paid for
property sales
|
0.8
|
|
—
|
|
Tariffs refunds related
to property, plant, and equipment
|
1.4
|
|
—
|
|
Adjusted Free Cash
Flow
|
$
22.4
|
|
$
8.3
|
|
|
|
|
|
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 Six Months
Ended
|
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
|
Net income (loss)
(as reported)
|
$
21.3
|
|
$
(22.5)
|
|
$
27.1
|
|
$
(29.2)
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization expense of
customer lists
|
11.2
|
|
12.1
|
|
22.5
|
|
25.0
|
|
Acquisition and
integration costs
|
1.8
|
|
4.9
|
|
3.8
|
|
9.2
|
|
Share-based
compensation costs
|
3.0
|
|
4.2
|
|
5.3
|
|
7.5
|
|
Impairment
charges
|
—
|
|
29.1
|
|
—
|
|
29.1
|
|
Foreign exchange and
other (gains) losses, net
|
(5.0)
|
|
11.5
|
|
(10.9)
|
|
15.4
|
|
Other adjustments,
net
|
5.6
|
|
2.1
|
|
10.6
|
|
3.0
|
|
Tax impact of
adjustments (a)
|
0.9
|
|
(8.1)
|
|
(4.7)
|
|
(12.8)
|
|
Adjusted net
income
|
$
38.8
|
|
$
33.3
|
|
$
53.7
|
|
$
47.2
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(as reported)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
21.3
|
|
$
(22.5)
|
|
$
27.1
|
|
$
(29.2)
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
$
0.13
|
|
$
(0.14)
|
|
$
0.17
|
|
$
(0.18)
|
|
Diluted EPS
|
$
0.13
|
|
$
(0.14)
|
|
$
0.17
|
|
$
(0.18)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
159,196
|
|
161,149
|
|
159,465
|
|
161,038
|
|
Diluted
|
159,900
|
|
161,149
|
|
160,332
|
|
161,038
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share (Non-GAAP)
|
|
|
|
|
|
|
|
|
Adjusted net income
(Non-GAAP)
|
$
38.8
|
|
$
33.3
|
|
$
53.7
|
|
$
47.2
|
|
Adjusted diluted EPS
(Non-GAAP)
|
$
0.24
|
|
$
0.21
|
|
$
0.33
|
|
$
0.29
|
|
Diluted weighted
average common shares outstanding (in thousands) (Non-GAAP)
(b)
|
159,900
|
|
161,894
|
|
160,332
|
|
161,934
|
|
|
|
|
|
|
|
|
|
(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 745 and 896 for the three and six
months ended July 2, 2022. These dilutive securities were excluded
from GAAP diluted weighted average common shares outstanding due to
net loss reported in the period.
|
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SOURCE Primo Water Corporation