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 For the Nine Months Ended
October 2, 2021 September 26, 2020 October 2, September 26, 2020
2021
Revenue, net $ 550.8 $ 517.5 $ 1,555.3 $ 1,448.5
Cost of sales 242.4 213.4 685.2 616.4
Gross profit 308.4 304.1 870.1 832.1
Selling,
general and
administrative
expenses 263.6 257.2 771.5 759.0
Loss on
disposal of
property,
plant and
equipment,
net -- 2.3 5.4 6.2
Acquisition and
integration
expenses 2.6 3.3 6.3 28.4
Goodwill and
intangible
asset
impairment
charges -- -- -- 115.2
Operating
income (loss) 42.2 41.3 86.9 (76.7)
Other expense
(income), net 4.3 (4.8) 29.5 0.6
Interest
expense, net 16.7 20.4 53.4 60.8
Income (loss)
from
continuing
operations
before income
taxes 21.2 25.7 4.0 (138.1)
Income tax
expense
(benefit) 3.1 3.4 4.4 (1.3)
Net income
(loss) from
continuing
operations $ 18.1 $ 22.3 $ (0.4) $ (136.8)
Net (loss)
income from
discontinued
operations,
net
of income
taxes -- (0.3) -- 26.3
Net income
(loss) $ 18.1 $ 22.0 $ (0.4) $ (110.5)
Net income
(loss) per
common share
Basic:
Continuing
operations $ 0.11 $ 0.14 $ 0.00 $ (0.89)
Discontinued
operations $ -- $ -- $ -- $ 0.17
Net income
(loss) $ 0.11 $ 0.14 $ 0.00 $ (0.72)
Diluted:
Continuing
operations $ 0.11 $ 0.14 $ 0.00 $ (0.89)
Discontinued
operations $ -- $ -- $ -- $ 0.17
Net income
(loss) $ 0.11 $ 0.14 $ 0.00 $ (0.72)
Weighted
average common
shares
outstanding (in
thousands)
Basic 160,481 160,101 160,892 153,723
Diluted 161,932 161,433 160,892 153,723
PRIMO WATER CORPORATION EXHIBIT 2
CONSOLIDATED BALANCE SHEETS
(in millions of U.S. dollars, except
share amounts)
Unaudited
October 2, 2021 January 2, 2021
ASSETS
Current assets
Cash and cash equivalents $ 125.3 $ 115.1
Accounts receivable, net of allowance
of $21.0 ($20.7
as of January 2, 2021) 287.6 222.3
Inventories 95.7 83.8
Prepaid expenses and other current
assets 21.1 21.3
Total current assets 529.7 442.5
Property, plant and equipment, net 689.5 685.6
Operating lease right-of-use-assets 174.6 180.6
Goodwill 1,277.0 1,284.3
Intangible assets, net 948.4 987.6
Other long-term assets, net 23.9 24.1
Total assets $ 3,643.1 $ 3,604.7
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings $ 172.9 $ 107.7
Current maturities of long-term debt 14.1 17.9
Accounts payable and accrued
liabilities 442.1 387.7
Current operating lease obligations 33.9 35.5
Total current liabilities 663.0 548.8
Long-term debt 1,308.4 1,345.1
Operating lease obligations 143.8 148.0
Deferred tax liabilities 149.6 148.1
Other long-term liabilities 64.8 67.8
Total liabilities 2,329.6 2,257.8
Shareholders' Equity
Common shares, no par value -
160,135,328 (January
2, 2021 - 160,406,464) shares issued 1,277.8 1,268.0
Additional paid-in-capital 83.0 84.5
Retained earnings 29.7 81.1
Accumulated other comprehensive loss (77.0) (86.7)
Total shareholders' equity 1,313.5 1,346.9
Total liabilities and shareholders'
equity $ 3,643.1 $ 3,604.7
PRIMO WATER CORPORATION EXHIBIT 3
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)
Unaudited
For the Three Months Ended For the Nine Months
Ended
October 2, 2021 September October September
26, 2020 2, 2021 26, 2020
Cash flows from
operating
activities of
continuing
operations:
Net income
(loss) $ 18.1 $ 22.0 $ (0.4) $ (110.5)
Net (loss)
income from
discontinued
operations,
net
of income
taxes -- (0.3) -- 26.3
Net income
(loss) from
continuing
operations $ 18.1 $ 22.3 $ (0.4) $ (136.8)
Adjustments to
reconcile net
income (loss)
from continuing
operations to
cash flows from
operating
activities:
Depreciation
and
amortization 53.3 53.6 158.4 151.4
Amortization of
financing fees 0.8 0.9 2.5 2.7
Share-based
compensation
expense 3.8 6.2 10.0 13.5
Provision
(benefit) for
deferred
income taxes 1.9 1.8 1.3 (2.6)
(Gain) loss on
sale of
business -- -- -- (0.6)
Loss on -- -- 27.2 --
extinguishment
of debt
Goodwill and
intangible
asset
impairment
charges -- -- -- 115.2
Loss on
disposal of
property,
plant and
equipment,
net -- 2.3 5.4 6.2
Other non-cash
items 3.9 (2.8) 2.9 1.7
Change in
operating
assets and
liabilities,
net of
acquisitions:
Accounts
receivable (3.3) (48.6) (65.2) (38.5)
Inventories (9.6) 0.5 (12.7) 3.0
Prepaid
expenses and
other current
assets 3.6 (3.9) (0.6) (3.5)
Other assets 0.1 (0.3) 0.4 (0.9)
Accounts
payable and
accrued
liabilities
and other
liabilities 10.8 21.2 42.5 12.6
Net cash
provided by
operating
activities
from
continuing
operations 83.4 53.2 171.7 123.4
Cash flows from
investing
activities of
continuing
operations:
Acquisitions,
net of cash
received (12.9) (1.2) (13.2) (435.7)
Additions to
property,
plant and
equipment (37.5) (21.4) (99.3) (85.0)
Additions to
intangible
assets (2.6) (2.5) (6.7) (7.9)
Proceeds from
sale of