Cott Continues On Positive Performance Path; Also Announces Final Major Divestiture.TORONTO--(BUSINESS WIRE)--Aug. 4, 1999-- 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 .) (ME:BCB.) ALL INFORMATION IN US DOLLARS Earnings Per Share at 12 cents for Quarter, 14 cents for Half-Year Cott Corporation today announced second quarter results showing a continued rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in financial performance. Recording profitable operating results for back-to-back back-to-back adj. Consecutive; successive: back-to-back performances; back-to-back home runs. Adj. 1. quarters, the company reported earning 12 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the second quarter, 14 cents for the first half of the year before the change in accounting principle. At the same time, Cott made known that divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of most of its interest in Menu Foods Limited has been completed. The company held substantial minority ownership and will record the sale in the third quarter. Overall, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $40 million in cash proceeds from divestitures divides equally into 2nd and 3rd quarters. "We are clearing a path for sustained performance," said Frank E. Weise, president and chief executive officer. "After two positive quarters, we now begin to see mileposts as our strategic plans take hold. We are emerging from a transition period with an eye toward reaching targets for customer satisfaction, sales growth and earnings delivery. Our focus is single-mindedly sin·gle-mind·ed adj. 1. Having one overriding purpose or goal: the single-minded pursuit of money. 2. on our core 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 business." "Leading the way in our rebound has been stronger performance in North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. . Highlights include increased sales to top U.S. accounts and improved manufacturing efficiencies in both the U.S. and 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 ," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Weise. Corporate Review For the quarter, 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. totaled $17.0 million vs. $19.7 million last year. For the half-year, operating income was $28.0 million vs. $30.6 million in the previous year. Sales for the quarter were $288.3 million compared with $310.1 million a year ago. The company noted that sales and income were adversely affected by its shift to calendar-year reporting, meaning that this year's quarterly results covered April-May-June vs. May-June-July in the previous year. For the first two quarters, sales were $520.5 million vs. $568.2 million last year. Earnings per share of 12 cents for the quarter and 14 cents for the half compared with last year's 12 cent and 15 cent totals. On a 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. basis, before the change in accounting principle, the earnings per share figures were 11 cents for this quarter and 12 cents for the half-year vs. last year's totals of 12 cents and 15 cents. 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. Sales in the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of market were steady at $175.2 million vs. $175.3 million a year ago. Record shipments in the quarter were offset by adverse mix impact. Operating income for the quarter rose to $13.9 million from $12.7 million last year. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , sales were up slightly at $313.4 million vs. $312.0 million, operating income also rose from $21.0 million last year to $23.6 million. The strengthening U.S. performance is marked by two positive factors: first, sales to Cott's top 5 retail customers rose 15 percent in the quarter; second, increased efficiencies in plant operations have led to improved margins as well as higher levels of customer service. United Kingdom/Europe In this market, second quarter sales dropped to $58.3 million vs. $72.1 million, while the half-year sales were $103.5 million compared with $137.3 million last year. Operating income was $2.2 million for the quarter vs. $5.8 million a year ago; for year-to-date, operating income was $3.2 million vs. $9.5 million last year. With a new management team just implementing a disciplined business plan, the UK unit has faced a period of substantial change. Streamlining both its manufacturing and customer base has resulted in lower volumes across the board. Closing Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. operations had a negative impact on sales. Canada Sales were $49.4 million in the quarter vs. $52.2 million last year. Volumes ebbed slightly due to lower exports and the exchange of July July: see month. for April sales. Highlights included the launch of Cott's new 250ml package soft drink "Chubby chub·by adj. chub·bi·er, chub·bi·est Rounded and plump. See Synonyms at fat. [Probably from chub (from the plumpness of the fish). (R)" to a range of 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. supermarket supermarket Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. and convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. . Operating income for the second quarter jumped to $5.9 million from $4.6 million, as margins benefited from a number of productivity initiatives. For the year-to-date, sales were $85.7 million vs. $96.1 million last year. Operating income for the half-year was $8.5 million vs. $7.9 million a year ago. Divestitures Following the end of the quarter, Cott divested a 38.25 percent interest in Menu Foods Limited, retaining 5.5 percent. This strategic move continues the company's drive to sharpen sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp its performance as the leading retailer partner in premium branded soft drinks. Altogether, the proceeds for a series of non-core divestitures will total approximately $40 million. In addition to Menu, they include: Destination Products International, The Watt Design Group, beverage operations in Featherstone This article is about the Yorkshire town. For other references, see Featherstone (disambiguation). Featherstone Featherstone is a town in the City of Wakefield district, in West Yorkshire, England. (UK) and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . Cott is the world's largest retailer brand beverage supplier, with major manufacturing facilities in its three core markets of Canada, the U.S. and the U.K. This news release may contain 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future performance of Cott. 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.
COTT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in millions of US dollars except per share amounts, US GAAP)
Unaudited
For the three For the six
months ended months ended
--------------------------------------
July 3, August 1, July 3, August 1,
1999 1998 1999 1998
------- -------- ------ ---------
Sales $ 288.3 $ 310.1 $ 520.5 $ 568.2
Cost of sales 247.2 266.6 447.5 489.8
------- -------- ------ ---------
Gross profit 41.1 43.5 73.0 78.4
Selling, general and
administrative expenses 24.1 23.8 45.0 47.8
------- -------- ------ ---------
Operating income 17.0 19.7 28.0 30.6
Other expenses (income),
net (0.1) 0.6 0.2 0.1
Interest expense, net 8.9 9.1 18.1 17.8
------- -------- ------ ---------
Income before income taxes, equity
income and minority
interest 8.2 10.0 9.7 12.7
Provision for income
taxes (1.1) (2.9) (2.1) (3.8)
Equity income 0.2 0.6 0.5 1.1
Minority interest - (0.1) - (0.1)
------- -------- ------ ---------
Income before change in
accounting principle 7.3 7.6 8.1 9.9
Cumulative effect of change in
accounting principle,
net of tax - - (2.1) -
------- -------- --------- ---------
Net income $ 7.3 $ 7.6 $ 6.0 $ 9.9
------- -------- -------- ---------
------- -------- -------- ---------
Income per common share:
Income before change in
accounting
principle $ 0.12 $ 0.12 $ 0.14 $ 0.15
Cumulative effect of change in
accounting
principle $ - $ - $ (0.03) $ -
Net income $ 0.12 $ 0.12 $ 0.11 $ 0.15
Diluted income per common share:
Income before change in
accounting
principle $ 0.11 $ 0.12 $ 0.12 $ 0.15
Cumulative effect of change in
accounting
principle $ - $ - $ (0.03) $ -
Net income $ 0.11 $ 0.12 $ 0.09 $ 0.15
COTT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of US dollars, US GAAP)
Unaudited
For the six months ended
--------------------------------
July 3, 1999 August 1, 1998
------------ ---------------
Operating Activities
Income before change in accounting
principle $ 8.1 $ 9.9
Depreciation and amortization 20.3 25.1
Deferred income taxes - (1.2)
Equity income (0.5) (1.1)
Minority interest - 0.1
Gain on sale of property,
plant and equipment - (0.3)
Net change in non-cash working capital from
continuing operations (35.6) (42.0)
------------ --------------
Net cash used in operating activities (7.7) (9.5)
Investing Activities
Additions to property, plant
and equipment (7.1) (28.4)
Proceeds from disposals
of businesses 20.4 -
Proceeds from disposal of property,
plant and equipment 0.5 3.8
Other investing activities (0.7) (3.5)
Net cash provided by (used in)
investing activities 13.1 (28.1)
------------ ---------------
Financing Activities
Payments of long-term debt (29.0) (26.2)
Short-term borrowings 2.1 4.6
Common shares purchased and cancelled - (8.4)
Issue of common shares - 0.7
Issue of preferred shares - 40.0
Share issue expense - (1.8)
Dividends paid - (2.2)
------------ ---------------
Net cash provided by (used in)
financing activities (26.9) 6.7
Net cash used in discontinued
operations (0.5) -
Effect of exchange rate changes on cash
and cash equivalents 0.2 (0.7)
------------ ---------------
Net decrease in cash and cash
equivalents (21.8) (31.6)
Cash and cash equivalents,
beginning of period 28.1 103.6
------------ ---------------
Cash and cash equivalents,
end of period $ 6.3 $ 72.0
------------- ---------------
------------- ---------------
COTT CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions of US dollars, US GAAP)
Unaudited Audited
July 3, 1999 January 2, 1999
ASSETS
Current assets
Cash and cash equivalents $ 6.3 $ 28.1
Accounts receivable 137.4 110.0
Inventories 77.5 77.3
Prepaid expenses 2.5 2.6
Discontinued operations - 12.0
------------ ---------------
223.7 230.0
Property, plant and equipment 267.0 295.8
Investment 12.7 11.6
Other assets 10.4 10.3
Goodwill 111.2 132.1
------------ ---------------
$ 625.0 $ 679.8
------------ ---------------
------------ ---------------
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities
Short-term borrowings $ 28.3 $ 13.5
Accounts payable and accrued
liabilities 103.1 121.1
Current maturities of long-term debt 20.8 12.5
Discontinued operations - 5.7
------------ ---------------
152.2 152.8
Long-term debt 342.6 402.4
Deferred income taxes 0.6 2.6
Shareowners' equity
Capital stock 229.0 229.0
Deficit (75.8) (81.8)
Foreign currency translation
adjustment (23.6) (25.2)
------------ ---------------
Shareowners' equity 129.6 122.0
------------ ---------------
$ 625.0 $ 679.8
------------ ---------------
------------ ---------------
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