Cott Announces First Quarter Results.Business Editors TORONTO--(BUSINESS WIRE)--April 17, 2002 Cott Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :COTT; TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :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 ): - SALES RISE 9%, OPERATING INCOME UP 42%, - $0.11 EPS BEFORE ONE-TIME CHARGES UP 57%, - SFAS 142 CHARGE TAKEN IN UK (All information in U.S. dollars) Cott Corporation (NASDAQ:COTT; TSE:BCB) today announced stronger sales and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter ended March 30, 2002, extending the Company's record into a fourth consecutive year of profitable operating performance. The retailer brand beverage maker reported operating income of $18.4 million, up 42% from last year's $13.0 million. "We have established momentum and our major business segments, including recent acquisitions, are fueling growth," said Frank E. Weise, Cott's chairman, president and chief executive officer. "These results give us confidence that 2002 will be another year of winning performance by the Cott team for our shareowners." Sales in the first quarter were up 9% to $250 million compared to $229 million last year, led by an 11% increase in the U.S. business. 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 were down 6% primarily due to the weaker Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . In the U.K./International business unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. rose by 16%, half of which resulted from the recent RC International acquisition. Earnings per 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. share were $0.11 before one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges, up 57% from $0.07 per diluted share in the first quarter of 2001. Gross margin for the quarter was 18.4%, up from 18.3% in the fourth quarter 2001 and 15.8% in the first quarter last year. These improvements were principally due to gains in plant efficiencies and to the impact of the acquisition of the Royal Crown assets. The margin improvement was offset by increased interest expense on the debt incurred to make this acquisition. During the quarter, the Company announced the appointment of John K. Sheppard Sheppard can refer to:
Any of the North American Indian tribes speaking a language of the Iroquoian family and living at the time of European contact in a continuous territory around Lakes Ontario, Huron, and Erie. Enterprises Ltd. in Revelstoke Revelstoke (rĕv`əlstōk), city (1991 pop. 7,729), SE British Columbia, Canada, on the Columbia River. The city is at the foot of the Selkirk Mts. and is the gateway to Mt. Revelstoke National Park. , B.C., and Iroquois Water Ltd. in Cornwall, Ontario Cornwall is a city in eastern Ontario, Canada and the seat of the United Counties of Stormont, Dundas and Glengarry, Ontario. Cornwall is Ontario's easternmost city, located on the St. . In the first quarter, as required, the Company adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 142, which deals with new methods of establishing the value of goodwill. This change in accounting principle resulted in the Company recording a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $44.8 million to write down the entire goodwill in its U.K. business. In addition, as previously reported, the Company recorded an extraordinary item of $9.6 million after tax to cover early redemption costs associated with the December December: see month. 2001 high yield bond refinancing Refinancing An extension and/or increase in amount of existing debt. . This refinancing will result in annual interest savings of approximately $3 million. After including both these one-time charges, the Company reported a net loss of $46.8 million for the quarter and a loss in earnings per diluted share of $0.76 for the quarter. The Company also amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its guidance for the full year, setting its estimate of earnings per diluted share at $0.72-$0.74, before the one-time charges recorded in the first quarter. It also reaffirmed previous estimates that sales are expected to increase 8-10%, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become is expected to reach $160 million and that capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. will be held to $45-$50 million in 2002. Conference Call Cott Corporation will host a conference call on Thursday Thursday: see week. , April 18 at approximately 11:30 AM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss first quarter financial results. For those who wish to listen to the presentation, there is a listen-only dial-in telephone line, which can be accessed as follows: 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. : 888-881-4892 International: 416-640-4127 Webcast To access the conference call on April 18th over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , investors, analysts and the public in general are invited to visit Cott's website at http://www.cott.com at least fifteen minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio/video software. For those who are unable to access the live broadcasts, a replay will be available at Cott's website following the event. About Cott Corporation Cott Corporation is the world's largest retailer brand soft drink supplier, with the leading take home carbonated car·bon·ate tr.v. car·bon·at·ed, car·bon·at·ing, car·bon·ates 1. To charge (a beverage, for example) with carbon dioxide gas. 2. To burn to carbon; carbonize. 3. To change into a carbonate. soft drink market shares in this segment in its core markets of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada and the United Kingdom. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statements This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate securities commissions, and include, without limitation, stability of procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. costs for raw and packaging materials, adverse weather conditions, competitive activities by national, regional and retailer brand beverage manufacturers, the Company's ability to integrate acquired business into its operations, fluctuations in currency versus the U.S. dollar, the uncertainties of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and retailers' continued commitment to their retailer brand beverage programs. The foregoing list of factors is not exhaustive. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
COTT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in millions of US dollars except per share amounts, US GAAP)
Unaudited
For the quarter ended
-------------------------------
March 30, 2002 March 31, 2001
-------------- --------------
Sales $ 250.0 $ 229.0
Cost of sales 203.9 192.9
Gross profit 46.1 36.1
Selling, general and
administrative expenses 27.7 23.1
-------------- --------------
Operating income 18.4 13.0
Other income, net (0.1) (2.0)
Interest expense, net 9.3 6.7
Minority interest 0.5 -
-------------- --------------
Income before income taxes 8.7 8.3
Income taxes (1.1) (3.2)
-------------- --------------
Income from continuing operations 7.6 5.1
Extraordinary item (9.6) -
Cumulative effect of change
in accounting principle (44.8) -
-------------- --------------
Net income (loss) $ (46.8) $ 5.1
============== ==============
Volume - 8 oz equivalent cases 173.3 135.7
Income per share - basic
Income from continuing operations $ 0.12 $ 0.09
Extraordinary item $ (0.15) $ -
Cumulative effect of change in
accounting principle $ (0.73) $ -
Net income (loss) $ (0.76) $ 0.09
Income per share - diluted
Income from continuing operations $ 0.11 $ 0.07
Extraordinary item $ (0.15) $ -
Cumulative effect of change
in accounting principle $ (0.73) $ -
Net income (loss) $ (0.76) $ 0.07
COTT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of US dollars, US GAAP)
Unaudited
For the quarter ended
-------------------------------
March 30, 2002 March 31, 2001
-------------- --------------
Operating Activities
Income from continuing operations $ 7.6 $ 5.1
Depreciation and amortization 10.3 9.6
Amortization of financing fees 0.5 0.3
Deferred income taxes 0.3 3.1
Minority interest 0.5 -
Other non-cash items 1.0 (1.4)
Net change in non-cash working
capital from continuing operations (24.8) (14.3)
-------------- --------------
Cash provided by (used in)
continuing operations (4.6) 2.4
Cost of debt redemption (10.6) -
-------------- --------------
Cash provided by (used in)
operating activities (15.2) 2.4
-------------- --------------
Investing Activities
Additions to property, plant
and equipment (10.7) (10.0)
Proceeds from disposal of property,
plant and equipment 0.2 0.6
Other (2.6) (0.3)
-------------- --------------
Cash used in investing activities (13.1) (9.7)
-------------- --------------
Financing Activities
Repayment of long-term debt (277.6) (0.3)
Short-term borrowings 14.5 -
Decrease in cash in trust 297.3 -
Distributions to subsidiary
minority shareowner (0.3) -
Issue of common shares 4.7 1.4
-------------- --------------
Cash provided by financing activities 38.6 1.1
-------------- --------------
Effect of exchange rate changes
on cash and cash equivalents (0.1) (0.1)
-------------- --------------
Net increase (decrease) in
cash and cash equivalents 10.2 (6.3)
Cash and cash equivalents,
beginning of period 3.9 7.2
-------------- --------------
Cash and cash equivalents,
end of period $ 14.1 $ 0.9
============== ==============
COTT CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions of US dollars, US GAAP)
Unaudited Audited
March 30, 2002 December 29, 2001
-------------- -----------------
ASSETS
Current assets
Cash and cash equivalents $14.1 $3.9
Cash in trust - 297.3
Accounts receivable 126.0 122.0
Inventories 79.8 68.2
Prepaid expenses 2.8 3.4
----------- ----------
222.7 494.8
Property, plant and equipment 248.4 246.9
Goodwill 69.0 114.1
Intangibles and other assets 206.0 209.6
----------- ----------
$746.1 $1,065.4
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities
Short-term borrowings $48.7 $34.2
Current maturities of long-term debt 8.1 281.8
Accounts payable and accrued
liabilities 116.0 125.4
----------- ---------
172.8 441.4
Long-term debt 355.7 359.5
Other liabilities 37.2 41.0
----------- ---------
565.7 841.9
Minority interest 28.3 28.1
Shareowners' equity
Capital stock 241.8 237.1
Retained earnings (deficit) (44.8) 2.0
Accumulated other
comprehensive income (44.9) (43.7)
---------- ---------
152.1 195.4
---------- ---------
$746.1 $1,065.4
========== =========
COTT CORPORATION
SEGMENT INFORMATION
(in millions of US dollars, US GAAP)
Unaudited
For the quarter ended
---------------------------------
March 30, 2002 March 31, 2001
-------------- --------------
Sales
USA $187.5 $168.7
Canada 32.0 33.9
UK & International 30.5 26.4
----------- ------------
$250.0 $229.0
=========== ============
Operating income (loss)
USA $20.3 $16.5
Canada 1.8 1.7
UK & International (2.8) (1.5)
Corporate & Other (0.9) (3.7)
----------- -----------
$18.4 $13.0
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