Cott Reports Fifth Consecutive Profitable Quarter, Sees Strong Performance For The Year.Business Editors TORONTO--(BUSINESS WIRE)--April 27, 2000 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 .) today announced positive net income for the first quarter 2000 - its fifth consecutive profitable quarter. Net income for the quarter was $2.0 million ($0.03 per share) versus net income before the change in accounting principle of $0.8 million last year ($0.01 per share). Net income growth was driven by more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix and improved operating efficiencies as the Company continued to improve quality, cost and productivity through its Six Sigma Not to be confused with Sigma 6. Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects.[1] A defect is defined as nonconformity of a product or service to its specifications. and Continuous Process Improvement initiatives. Gross margin expanded to 16.3 percent of sales compared to 13.9 percent last year. "We are on target to achieve our objectives, as we continue to focus on our core business and core customers," said Frank E. Weise, President and Chief Executive Officer. "More than doubling our net income for the first quarter is a promising milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. . We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the balance of the year and expect strong performance from our Company." First quarter sales were $213.8 million compared to $232.2 million for the first quarter last year. Excluding the impact of divested businesses, sales were 2.4 percent lower than last year. The Company's continued strong performance in the U.S. was offset by weakness in the U.K. market. Sales to the top 15 customers which accounted for almost 80 percent of the Company's business grew 8 percent versus last year, outpacing category growth. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the first quarter was $2.3 million, up from a minus $3.5 million a year ago. Net debt stood at $330.1 million at the end of the quarter, compared to $369.0 million at the end of first quarter last year. After the quarter ended, the company completed the sale of its bottle blow molding molding, in architecture, furniture, and decorative objects, a surface or group of surfaces of projecting or receding contours. A molding may serve as a defining element, terminating a unit or an entire composition (e.g. assets in the U.S. to Schmalbach-Lubeca Plastic Containers USA, Inc. and realized proceeds amounting to $15.5 million. These proceeds will be used to further reduce debt. SEGMENTS 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 For the quarter, sales totaled $36.1 million compared to $36.3 million last year. Sales to the top 5 customers grew 2 percent as compared to last year. 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. was $3.1 million up 19.2 percent from last year, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to reduced sales of low margin business and improved operating efficiencies and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. . United Kingdom For the quarter, sales were $30.1 million versus $41.5 million last year. 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 the 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. plant in May 1999, lower co-packing volume and continued pricing pressure all contributed to lower sales. The U.K. business posted a loss from operations of $0.2 million versus an income from operations of $1.0 million last year. 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. For the quarter, sales rose to $143.7 million versus $138.2 million last year, an increase of 4.0 percent. Sales to the top 5 customers grew 17 percent, reflecting a focus on improving service. Operating income was $13.4 million, up 38.1 percent from last year, reflecting improved product mix and plant efficiencies. Cott is the world's largest retailer brand beverage supplier, with major manufacturing facilities in its three core markets of Canada, the U.K. and the U.S. 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 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 months ended
April 1, 2000 April 3, 1999
------------------------------
Sales $213.8 $232.2
Cost of sales 178.9 199.9
------------------------------
Gross profit 34.9 32.3
Selling, general and
administrative expenses 23.4 21.3
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Operating income 11.5 11.0
Other expenses (income), net (0.1) 0.3
Interest expense, net 8.1 9.2
------------------------------
Income before income taxes and equity income 3.5 1.5
Income taxes (1.5) (1.0)
Equity income - 0.3
------------------------------
Income from continuing operations 2.0 0.8
Cumulative effect of
change in accounting principle,
net of tax - (2.1)
-----------------------------
Net income (loss) $2.0 $ (1.3)
------------------------------
------------------------------
Income (loss) per common share - basic:
Income from continuing operations $0.03 $0.01
Cumulative effect of change
in accounting principle $ - $(0.03)
Net income (loss) $0.03 $(0.02)
Income (loss) per common share - diluted:
Income from continuing operations $0.03 $0.01
Cumulative effect of change
in accounting principle $ - $(0.03)
Net income (loss) $0.03 $(0.02)
COTT CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions of US dollars, US GAAP)
Unaudited Audited
April 1, 2000 January 1, 2000
-------------------------------
ASSETS
Current assets
Cash and cash equivalents $1.3 $2.6
Accounts receivable 104.4 97.6
Inventories 71.2 67.3
Prepaid expenses 1.7 4.4
-------------------------------
178.6 171.9
Property, plant and equipment 266.0 266.4
Goodwill 106.3 108.1
Investment and other assets 42.0 43.2
-------------------------------
$592.9 $589.6
-------------------------------
-------------------------------
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities
Short-term borrowings $12.9 $1.8
Current maturities of long-term debt 5.9 1.6
Accounts payable and accrued
liabilities 101.9 104.8
Discontinued operations 1.0 1.0
-------------------------------
121.7 109.2
Long-term debt 312.6 322.0
Other liabilities 16.2 16.1
Shareowners' equity
Capital stock 229.0 229.0
Deficit (61.3) (63.3)
Accumulated other comprehensive income (25.3) (23.4)
-------------------------------
142.4 142.3
-------------------------------
$592.9 $589.6
-------------------------------
-------------------------------
COTT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of US dollars, US GAAP)
Unaudited
For the three months ended
April 1, 2000 April 3, 1999
------------------------------
Operating Activities
Income from continuing operations $2.0 $0.8
Depreciation and amortization 9.9 9.9
Deferred income taxes 1.3 -
Equity income - (0.3)
Gain on sale of property,
plant and equipment (0.1) -
Other non-cash items 0.4 -
Net change in non-cash working capital from
continuing operations (11.2) (13.9)
------------------------------
Cash provided by (used in)
operating activities 2.3 (3.5)
Investing Activities
Additions to property, plant and equipment (6.8) (4.6)
Proceeds from disposal of property,
plant and equipment 0.1 -
Other (1.3) -
------------------------------
Cash used in investing activities (8.0) (4.6)
Financing Activities
Payments of long-term debt (4.6) (7.3)
Short-term borrowings 11.1 9.7
Other (2.1) -
------------------------------
Cash provided by financing activities 4.4 2.4
Net cash used in discontinued operations - (0.3)
Effect of exchange rate
changes on cash and cash equivalents - 0.1
------------------------------
Net decrease in cash and cash equivalents (1.3) (5.9)
Cash and cash equivalents,
beginning of period 2.6 28.1
------------------------------
Cash and cash equivalents, end of period $1.3 $22.2
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