COTT CORPORATION REPORTS HIGHER FIRST QUARTER EARNINGS.TORONTO--(BUSINESS WIRE)--June 7, 1995--Cott Corporation (NNM NNM Network Node Manager NNM NASDAQ National Market (financial) NNM National Nutrition Month (March; American Dietetic Association) NNM Naryan-Mar (Russia) NNM Net New Money :COTTF, TSE/ME:BCB BCB Banco Central do Brasil (Brazil's central bank) BCB Borland C++ Builder BCB Bangladesh Cricket Board BCB Benzocyclobutene (low loss dielectric substrate) BCB Bumiputra-Commerce Bank BCB Broadcast Band ) announced today that net earnings for the first quarter of Fiscal 1996 (ended April 29, 1995) rose to $9.8 million, an increase of 2% from $9.6 million in the comparable quarter of Fiscal 1995. Basic and fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings under Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). of $0.16 per common share were unchanged from those of the prior year's period. Earnings of $0.16 per share under U.S. GAAP were one penny higher than in last year's first quarter. Sales revenues for the quarter of $287.1 million rose 29% from $222.8 million in first quarter of Fiscal 1995. The increase was fuelled by both higher case sales as well as an increase in the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. per case. Raw case sales rose 13% during the most recent quarter to 50.4 million. The increase was accomplished despite the effect of weak soft drink industry conditions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. as well as large inventories built up by retailers in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the higher wholesale prices that became effective in February February: see month. , 1995. The higher case sales during the quarter reflect solid gains in our international and U.S. businesses, offset somewhat by lower case sales in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Lower Canadian soft drink case sales during the quarter reflect consumer aversion a·ver·sion n. 1. A fixed, intense dislike; repugnance, as of crowds. 2. A feeling of extreme repugnance accompanied by avoidance or rejection. to higher selling prices, inventory build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. by retailers in anticipation of the February price increase and continuing difficult competitive conditions. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. of 16.2% during the first quarter reflect sharp recovery from that of the fourth quarter of last year, when margins and earnings were adversely impacted by higher raw material and packaging costs. The strong recovery in gross profit margins is due primarily to higher selling prices initiated by the company in February, 1995. Selling, general and administrative expenses increased both in absolute dollars and as a percentage of sales, from $17.3 million or 7.8% of sales in last year's quarter to $23.8 million or 8.3% of sales this year. SG&A expense is expected to decline as a percentage of sales as the year progresses. Control of S,G&A expenses is one aspect of a more comprehensive program recently initiated to reduce the company's operating and financial costs while boosting operating efficiencies and customer service levels. Interest and amortization expense both rose from levels reported during last year's first quarter, reflecting the company's growth in physical assets and the comparable rise in term debt added during the course of Fiscal 1995. The effective tax rate declined to 35.9% from 37.4% in last year's first quarter. The decline reflects the rising percentage of pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings generated outside of North America, and the lower tax rates that apply to those earnings. On June June: see month. 1, 1995 the company finalized See finalization. its acquisition of the 49% minority interest of Benjamin Shaw (Pontefract Pontefract (pŏn`tĭfrăkt, pŭm`frĭt), town (1991 pop. 28,621), Wakefield metropolitan district, N England. It is an industrial city; furniture, iron products, and textiles are made. Pomfret cakes are licorice lozenges made there. ) Limited, previously owned by Rutland Rutland, county, England Rutland, county (1991 pop. 32,400), 152 sq mi (394 sq km), central England. Rutland has a rolling terrain and is a rural upland area largely devoted to tillage and pasturage. Trust PLC. The purchase price of 4.25 million pounds (approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. C$ 9.4 million) was paid in cash. The company recently announced its intention to issue US $100 million of 10-year Senior Notes through a group of investment dealers led by Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. . Approximately $100 million (Canadian) of the proceeds
from the notes will be used to repay existing debt, including floating
rate debt outstanding under operating and revolving facilities (a
substantial part of which will be available for reborrowing Reborrowing is the process where a word travels from one language to another and then back to the originating language in a different form or with a different meaning.This is indicated by A→B→A, where A is the originating language. ), with the balance available for general corporate purposes. -0-
Cott Corporation
Consolidated Statement of Earnings
April 29, 1995
(In thousands of Canadian dollars
except per share amounts)
Year to Date
1995 1994
Sales $287,130 $222,763
Cost of Goods Sold 240,715 186,510
Gross Profit 46,415 36,253
Selling, general and administrative 23,837 17,269
Earnings Before Undernoted 22,578 18,984
Amortization 6,116 3,134
Interest, net 2,258 (122)
----- -----
8,374 3,012
Earnings Before Income Taxes 14,204 15,972
Income taxes (5,102) (5,970)
Minority interest 420 (762)
Equity in net earnings of
long term investments 290 374
Net Earnings $9,812 $9,614
Earnings per Common Share Basic $0.16 $0.16 Fully Diluted $0.16 $0.16 Earnings per Common Share U.S. GAAP Primary $0.16 $0.15 Fully Diluted $0.16 $0.15 The 1994 results have been restated as a result of a change in accounting policy for the treatment of a long term investment which had previously been accounted for by the equity method and is currently accounted for proportionately.
Cott Corporation
Statement of Changes in Financial Position
(In thousands of Canadian dollars)
Year to Date
April 29, April 30,
1995 1994
OPERATING ACTIVITIES
Net earnings from operations $ 9,812 $ 9,614
Items not affecting working capital:
Deferred development amortization 1,434 907
Prepaid contract amortization 2,875 2,834
Other amortization 4,682 2,227
Deferred income taxes (1,685) 600
Minority interest (420) 762
Net earnings of long-term investments (290) (374)
------- -------
16,408 16,570
Net change in non-cash working
capital components (22,086) (34,033)
-------- --------
(5,678) (17,463)
Financing Activities
Increase (decrease) in long-term
debt (14,959) 16,518
Issue of common shares 0 205
Dividends (1,492) (1,191)
Dividends paid to minority
shareholders (750) 0
Change in minority shareholders
advances (3,968) (39)
-------- --------
(21,169) 15,493
Investing Activities Business acquisitions 0 (15,849) Bank indebtedness of acquired subsidiary 0 (4,201) Additions to capital assets (5,745) (8,890)
Net change in other assets:
Prepaid contract costs (1,093) (2,219)
Deferred development costs (1,576) (2,698)
Other (536) (10)
------- --------
(8,950) (33,867)
Increase (Decrease) in Cash
During the period (35,797) (35,837)
Cash - beginning of period 19,713 77,501
-------- --------
Cash - end of period ($ 16,084) $ 41,664
Cott Corporation
Consolidated Balance Sheet
(In thousands of Canadian dollars)
April 29, April 30,
1995 1994
Assets
Cash 15,046 50,877
Accounts receivable 171,914 134,755
Inventories 160,319 104,082
Prepaid expenses 7,696 3,993
Income taxes recoverable --- 0
Long-Term Investments 12,316 12,603
Capital Assets 190,231 105,223
Goodwill, Licenses & Trademarks 77,545 55,373
Other Assets 36,815 29,157
------------ -----------
671,882 496,063
Liabilities and Shareholders' Equity
Bank indebtedness 31,130 9,213
Accounts payable
and accrued liabilities 196,496 110,416
Income taxes payable 3,117 2,169
Term debt 93,487 42,064
Minority Shareholders Advances 173 3,656
Deferred Revenue --- ---
Deferred Income Taxes 7,166 9,425
Minority Interest 18,487 18,478
Shareholders' Equity 321,826 300,642
------------ -------------
671,882 496,063
CONTACT: Cott Corporation David A. Goldman Gold·man , Emma 1869-1940. Russian-born American anarchist. Jailed repeatedly for her advocacy of birth control and opposition to military conscription, she was deported to the Soviet Union in 1919. , 706/327-6434 or 706/596-8837 Bobbi Fincher, 706/327-6434 or 706/596-8837 |
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