Cott Corporation Reports Results for the Second Quarter and First Half of Fiscal 1996.TORONTO--(BUSINESS WIRE)--Sept. 8, 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 earnings for the second quarter and first half of Fiscal 1996 of $15.2 million and $25.0 million, as compared against $15.9 million and $25.5 million, respectively, for the comparable periods of F1995. 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. 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). were $0.25 per share for the quarter and $0.41 per share for the first six months, as compared with $0.26 and $0.42 for the respective periods of last year. Under U.S. GAAP fully diluted EPS were $0.24 for the second quarter and $0.40 for the first six months, as compared with $0.25 and $0.40, respectively, for the comparable periods of Fiscal 1995. Sales for the quarter of $394.4 million were up $68.3 million from the $326 million of the second quarter of the prior year, an increase of 21%. This increase was attributable to a 12% increase in 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. growth and an increase in the company's average net selling price per case. Sales to 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. based customers increased by $43.3 million or more than 25% compared to the prior year and represented 56% of the company's total sales up from 54% in the prior year. 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 during the second quarter were up 6% compared to the prior year, although unit sales for the same period were down by 10%. The decline in Canadian unit sales reflects a continuation of very competitive conditions in the Canadian soft drink market as national brand manufacturers attempt to recapture recapture n. in income tax, the requirement that the taxpayer pay the amount of tax savings from past years due to accelerated depreciation or deferred capital gains upon sale of property. (See: income tax) RECAPTURE, war. market share. Internationally, sales increased by $27.8 million, or 55% and accounted for 20% of total sales, up from 16% in the prior year. Growth in our International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. was led by the UK business which increased its sales by 36% compared to the prior year. 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. for the quarter were 15.1% down from the 16.0% of the second quarter of the prior year. The decline is primarily attributable to the company's international operations, which grew to represent 20% of total sales, and which at the current time generate considerably lower gross profit margins than are realized 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. . In particular, our UK operation has relied on co-packing from competing private label manufacturers for their PET products, and realizes only nominal gross profit margin on these packages as a result of the high co-packing fees charged. While some company owned 2.0 litre LITRE. A French measure of capacity. It is of the size of a decimetre, or one-tenth part of a cubic metre. It is equal to 61.028 cubic inches. Vide Measure. manufacturing capability was added in the UK during the quarter, it is expected that the ongoing use of third party co-packers will continue to negatively impact gross margins in the UK. Selling, general and administrative expenses in the second quarter increased to $25.6 million or 6.5% of sales, from $19.3 million or 5.9% of sales in the prior year. The increase reflects the company's ongoing investment in infrastructure for its international operations, where we have commenced shipment to four new countries this fiscal year; for its first foray into Verb 1. foray into - enter someone else's territory and take spoils; "The pirates raided the coastal villages regularly" raid encroach upon, intrude on, obtrude upon, invade - to intrude upon, infringe, encroach on, violate; "This new colleague invades my the food business in the United States, which is expected to generate revenues during the third quarter; and for the Virgin Cola Virgin Cola is a carbonated cola soft drink produced by Princes limited. It was launched in 1994. History Virgin Cola was set up during the early 1990s in conjunction with Cott, a Canadian company that specialises in bottling own-label drinks. Company, which due to its nature has much higher associated S,G & A expenses, but which is creating significant future value for Cott shareholders. Amortization expense for the quarter of $6.4 million represents a 53% increase over the prior year and reflects the company's growth in physical and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. during the last twelve months. Interest expense for the quarter of $3.6 million represents a 63% increase compared to the same quarter in the prior year and is attributable to the long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. added by the company in fiscal 1995 and during this current fiscal year. Results of the company were negatively impacted during the quarter by the performance of its brewing brewing: see beer. subsidiary, Lakeport Lakeport may refer to a port located on a lake. Lakeport is the name of several places in the United States:
On June June: see month. 28, 1995, Cott issued US $160 million (Cdn $220 million) 10-year Senior Unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. Notes with an interest rate of 9.375%. Cott opted to increase the size of the Note offering from the US $100 million originally announced to enable it to have the resources to pay suppliers on accelerated terms with the objective of negotiating cash discounts and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. lower costs. As at the end of the quarter the company had used $47 million to pay suppliers in accelerated terms, representing a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. investment in non-cash working capital. In addition to repaying suppliers, the company used $103 million of the proceeds of the notes to repay short and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . The balance of the proceeds are invested in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. The issue of the 10-year Senior Unsecured Notes has enabled Cott to further strengthen its balance sheet by positioning the company with a very sound capital structure and increasing its working capital to $279 million. The company has more than $110 million in cash and over $100 million of undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely short and long-term bank facilities. The effective tax rate for the six months declined to 34.2% compared to the 36.1% realized for the full year in fiscal 1995. The decline reflects the rising percentage of pre-tax earnings generated outside of North America, and the lower tax rates that apply to those earnings. -0- COTT CORPORATION CONSOLIDATED STATEMENT OF EARNINGS JULY 29, 1995 (in thousands of Canadian dollars except per share amounts)
QUARTER 2 YEAR TO DATE
29-Jul-95 30-Jul-94 29-Jul-95 30-Jul-94
--------- --------- --------- ---------
Sales $394,372 $326,023 $681,502 $548,786
Cost of Goods Sold 334,875 273,719 575,590 460,229
-------- -------- ------- --------
Gross Profit 59,497 52,304 105,912 88,557
Selling, General and
Administrative
Expenses 25,561 19,304 49,398 36,573
------ ------ ------ ------
Earnings Before
Undernoted 33,936 33,000 56,514 51,984
Amortization 6,434 4,213 12,550 7,347
Interest 3,573 2,194 5,831 2,072
----- ----- ----- -----
Earnings Before
Income Taxes 23,929 26,593 38,133 42,565
------ ------ ------ ------
Income Taxes (7,950) (10,053) (13,052) (16,023)
Minority Interest (985) (905) (565) (1,667)
Equity in net
earnings of
long term
investments 183 295 473 669
------ ------ ------ ------
Net Earnings 15,177 15,930 24,989 25,544
======= ======= ======= =======
Canadian GAAP ------------- Earnings per common share Basic $ 0.25 $ 0.27 $ 0.42 $ 0.43 Fully Diluted $ 0.25 $ 0.26 $ 0.41 $ 0.42 US GAAP ------- Earnings per common share Primary $ 0.24 $ 0.25 $ 0.40 $ 0.40 Fully Diluted $ 0.24 $ 0.25 $ 0.40 $ 0.40 The 1994 results have been restated to reflect a change in accounting policy for the treatment of a long-term investment previously accounted for by the equity method and currently proportionately consolidated. COTT CORPORATION STATEMENT OF CHANGES IN FINANCIAL POSITION JULY 29, 1995 (in thousands of Canadian dollars)
2nd Quarter Year to Date
29-Jul-95 30-Jul-94 29-Jul-95 30-Jul-94
Operating Activities
Net earnings from
operations $15,177 $15,930 $24,989 $25,544
Items not affecting working
capital:
Deferred development
amortization 1,448 1,179 2,882 2,086
Prepaid contract
amortization 3,734 3,276 6,609 6,110
Other amortization 4,986 3,034 9,668 5,261
Deferred income
taxes (1,123) 1,710 (2,808) 2,310
Minority interest 985 905 565 1,667
Net earnings of
long-term
investments (183) (295) (473) (669)
------- ------ ------ ------
25,024 25,739 41,432 42,309
Net change in non-cash
working capital
components (51,968) (15,489) (74,054) (49,522)
------- ------ ------ ------
(26,944) 10,250 (32,622) (7,213)
Financing Activities
Change in long-term
debt 164,566 3,740 149,607 20,258
Cost of issuing long-
term debt (7,354) 0 (7,354) 0
Issue of common shares 4,988 0 4,988 205
Dividends (1,494) (1,194) (2,986) (2,385)
Dividends paid to
minority shareholders 0 0 (750) 0
Change in minority
shareholders advances (55) (15) (4,023) (54)
------- ------ ------ ------
160,651 2,531 139,482 18,024
Investing Activities
Business Acquisitions (13,218) (11,920) (13,218) (27,769)
Bank indebtedness of
acquired subsidiary 0 0 0 (4,201)
Additions to capital
assets (10,416) (18,937) (16,161) (27,827)
Change in goodwill,
licenses and
trademarks 3,631 (345) 3,631 (345)
Net change in other
assets:
Prepaid contract costs (7,575) (5,209) (8,668) (7,428)
Deferred development
costs (3,080) (1,691) (4,656) (4,389)
Other (606) (21) (1,142) (31)
------- ------ ------ ------
(31,264) (38,123) (40,214) (71,990)
------- ------ ------ ------
Increase (Decrease)
in Cash During
the Period 102,443 (25,342) 66,646 (61,179)
Cash -- Beginning
of Period (16,084) 41,664 19,713 77,501
------- ------ ------ ------
Cash -- end of
Period $86,359 $16,322 $86,359 $16,322
------- ------ ------ ------
Cash is net of bank indebtedness. COTT CORPORATION CONSOLIDATED BALANCE SHEET (In thousands of Canadian dollars)
July 29, July 30,
1995 1994
Assets
Cash and short-term investments $ 111,403 $ 27,122
Accounts receivable 198,901 177,131
Inventories 173,587 126,258
Prepaid expenses 9,314 5,721
Capital assets 196,646 145,905
Goodwill, licences & trademarks 76,457 67,022
Other assets 49,815 31,796
Long-term investments 12,478 12,898
---------- ----------
$ 828,601 $ 593,853
Liabilities and Shareholders' Equity
Bank indebtedness $ 25,044 $ 10,800
Accounts payable and accrued
liabilities 168,149 161,286
Income taxes payable 20,893 2,739
Term debt 257,492 71,636
Deferred income taxes 6,043 11,135
Minority interest 9,476 19,418
Minority shareholders advances 154 3,641
Shareholders' equity 341,350 313,198
---------- -----------
$ 828,601 $ 593,853
CONTACT: Cott Corporation David A. Goldman, 706/327-6434 (Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. ) or Bobbi Fincher-Parmer, 706/596-8837 (Investor Relations Coordinator) |
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