USA financial news

Primo Water Company Proclaims Sturdy Second Quarter 2022 Outcomes and Raises Full 12 months Steering

Firm points third quarter steering and raises full 12 months income and Adjusted EBITDA steering

TAMPA, Fla., Aug. 11, 2022 /PRNewswire/ – Primo Water Company (NYSE: PRMW) (TSX: PRMW) (the “Firm” or “Primo”), a main supplier of sustainable ingesting water options in North America and Europe, in the present day introduced its outcomes for the second quarter ended July 2, 2022.

(Except said in any other case, all second quarter 2022 comparisons are relative to the second quarter of 2021; all info is in U.S. {dollars}.)

SECOND QUARTER HIGHLIGHTS

  • Income elevated 9% to $571 million in comparison with $526 million (elevated 16% excluding the exit of the single-use bottled water retail enterprise in North America and the impression of overseas alternate).
  • Reported web loss and web loss per diluted share have been $23 million and $0.14, respectively, in comparison with reported web loss and web loss per diluted share of $8 million and $0.05, respectively. Adjusted web earnings and adjusted web earnings per diluted share have been $33 million and $0.21, respectively, in comparison with adjusted web earnings and adjusted web earnings per diluted share of $28 million and $0.17, respectively.
  • Adjusted EBITDA elevated 9% to $108 million in comparison with $100 million and Adjusted EBITDA margin was maintained at 18.9% for the quarter.
  • Firm will increase full 12 months 2022 income development expectation to between 12% to 14%, adjusted for the exit of the single-use bottled water retail enterprise in North America, and will increase full 12 months 2022 Adjusted EBITDA outlook to between $415 million and $425 million.


For the Three Months Ended

(in hundreds of thousands of U.S. {dollars}, besides per share
quantities, percentages and bps)


July 2, 2022


July 3, 2021


Y/Y Change

Income, web


$               571.4


$                   526.1


9 %

Internet loss


$                (22.5)


$                      (8.3)


$           (14.2)

Internet loss per diluted share


$                (0.14)


$                    (0.05)


$           (0.09)

Adjusted web earnings


$                 33.3


$                     27.5


$              5.8

Adjusted web earnings per diluted share


$                 0.21


$                     0.17


$            0.04

Adjusted EBITDA


$               108.0


$                     99.5


9 %

Adjusted EBITDA margin %


18.9 %


18.9 %


0bps

“I’m very happy with our income and adjusted EBITDA development within the second quarter, accentuating a stable first-half efficiency that places us on tempo to exceed our earlier full-year 2022 targets. Our outcomes have been pushed by improved pricing, quantity, and buyer development. Our pricing actions and operational efficiency give us the arrogance to extend our 2022 outlook to 12% to 14% income development (adjusted for the exit of the single-use bottled water retail enterprise in North America) and Adjusted EBITDA to between $415 million and $425 million {dollars}, regardless of a difficult Euro devaluation, unprecedented inflationary atmosphere and the exit of our enterprise in Russia. As we proceed to rework and reshape Primo, we’re a essentially stronger enterprise than ever earlier than. Our technique is working as evidenced by our first half 2022 efficiency and we stay assured in our skill to attain our long-term 2024 outlook of excessive single-digit natural income development with Adjusted EBITDA approaching $525 million {dollars},” stated Tom Harrington, Primo’s Chief Government Officer. 

“We’re happy that Primo’s money movement and stability sheet allow us to concurrently return worth to shareholders by common quarterly dividends, in addition to an opportunistic share repurchase program of $100 million {dollars}, whereas on the similar time persevering with to spend money on inner and exterior alternatives that can additional strengthen our operations and drive long-term development,” stated Mr. Harrington. 

OUTLOOK

Primo is focusing on the next outcomes from persevering with operations for the third quarter and full 12 months 2022:


Q3 2022

FY 2022


Vary

Vary

($ in hundreds of thousands)

Low

Excessive

Low

Excessive

Income

$570

$590

12%1

14%1

Adjusted EBITDA

$115

$120

$415

$425

Money Taxes


~ $10

Curiosity


~ $60

Cap-Ex


~ $200

1Adjusted for the exit of North America single-use retail bottled water enterprise and together with income from 2021 tuck-in acquisitions. Assumes present FX charges.

SECOND QUARTER 2022 RESULTS CONFERENCE CALL

Primo will host a convention name, to be concurrently webcast, on Thursday, August 11, 2022, at 10:00 a.m. Jap Time. An issue-and-answer session will comply with administration’s presentation. To take part, please name the next numbers: 

North America: (888) 664-6392
Worldwide: (416) 764-8659
Convention ID: 75198085
It is a stay, listen-only dial-in phone line.

A slide presentation and stay audio webcast will likely be accessible by Primo’s web site at https://www.primowatercorp.com. The earnings convention name will likely be recorded and archived for playback on the investor relations part of the web site for a interval of two weeks following the occasion.

SECOND QUARTER GLOBAL PERFORMANCE

  • Income elevated 9% to $571 million in comparison with $526 million (elevated by 16% excluding the exit of the single-use bottled water retail enterprise in North America and the impression of overseas alternate). The rise was pushed by buyer development, elevated demand throughout our buyer base, worth will increase and the profit from tuck-in acquisitions, partially offset by the exit from the single-use bottled water retail enterprise in North America and overseas alternate headwinds. Income development by channel is tabulated beneath:


For the Three Months Ended

(in hundreds of thousands of U.S. {dollars})


July 2, 2022


July 3, 2021


Change


%Change

Income, web









Water Direct/Water Trade


$               386.5


$                   323.0


$            63.5


20 %

Water Refill/Water Filtration


56.2


53.1


3.1


6 %

Different Water


44.1


64.6


(20.5)


-32 %

Water Dispensers


18.5


17.6


0.9


5 %

Different


66.1


67.8


(1.7)


-3 %

Income, web as reported


$               571.4


$                   526.1


$            45.3


9 %

Much less: Single-use retail bottled water enterprise in
North America


(14.4)


(36.5)


22.1


-61 %

Adjusted income


$               557.0


$                   489.6


$            67.4


14 %

International alternate impression


13.2



13.2


n/a

Adjusted income excluding overseas
alternate impression


$               570.2


$                   489.6


$            80.6


16 %

  • Gross revenue elevated 12% to $332 million in comparison with $297 million. Gross margin grew by 170 foundation factors to 58.2% in comparison with 56.5%, pushed by worth will increase, Water Direct quantity development and the exit of the single-use retail bottled water enterprise in North America, partially offset by overseas alternate headwinds.
  • SG&A bills elevated 12% to $292 million in comparison with $260 million. The rise was pushed by larger promoting and working prices supporting the quantity and income development of the enterprise in addition to basic inflationary price will increase.
  • Reported web loss and web loss per diluted share have been $23 million and $0.14, respectively, in comparison with reported web loss and web loss per diluted share of $8 million and $0.05, respectively. Adjusted web earnings and adjusted web earnings per diluted share have been $33 million and $0.21, respectively, in comparison with adjusted web earnings and adjusted web earnings per diluted share of $28 million and $0.17, respectively.
  • Adjusted EBITDA elevated 9% to $108 million in comparison with $100 million, pushed primarily by worth will increase, elevated demand for services throughout our buyer base and the exit of the single-use bottled water retail enterprise in North America. Adjusted EBITDA margin remained at 18.9% for the quarter.
  • Internet money supplied by working actions of $67 million, much less $49 million of capital expenditures and additions to intangible belongings, resulted in $18 million of free money movement, or $21 million of adjusted free money movement (adjusting for the gadgets set forth on Exhibit 7), in comparison with adjusted free money movement of $26 million within the prior 12 months.

SECOND QUARTER REPORTING SEGMENT PERFORMANCE

Throughout the second quarter the Firm realigned sure of its companies beforehand included within the Remainder of World section (now renamed “Europe”) between the Europe reporting section and the Different class. The Firm’s two reporting segments are actually North America and Europe. Phase reporting outcomes have been recast to mirror these adjustments for all intervals offered.

North America

  • Income elevated 10% to $437 million (elevated by 17% excluding the single-use bottled water retail enterprise in North America) pushed by buyer development, worth will increase and elevated demand for services from residential and business-to-business clients, partially offset by the exit from the single-use bottled water retail enterprise in North America. 


For the Three Months Ended

(in hundreds of thousands of U.S. {dollars})


July 2, 2022


July 3, 2021


Change


%Change

Income, web









Water Direct/Water Trade


$               321.1


$                   264.9


$            56.2


21 %

Water Refill/Water Filtration


47.3


45.1


2.2


5 %

Different Water


22.2


42.2


(20.0)


-47 %

Water Dispensers


18.5


17.6


0.9


5 %

Different


27.6


26.9


0.7


3 %

Income, web as reported


$               436.7


$                   396.7


$            40.0


10 %

Much less: Single-use retail bottled water enterprise in
North America


(14.4)


(36.5)


22.1


-61 %

Adjusted income


$               422.3


$                   360.2


$            62.1


17 %

International alternate impression


0.7



0.7


n/a

Adjusted income excluding overseas
alternate impression


$               423.0


$                   360.2


$            62.8


17 %

Europe

  • Income elevated 9% to $70 million (elevated 22% excluding the impression of overseas alternate) pushed by elevated demand for our services from residential and business-to-business clients and tuck-in acquisitions, partially offset by overseas alternate impression.


For the Three Months Ended

(in hundreds of thousands of U.S. {dollars})


July 2, 2022


July 3, 2021


Change


%Change

Income, web









Water Direct/Water Trade


$                 53.7


$                     47.7


$              6.0


13 %

Water Refill/Water Filtration


8.2


7.8


0.4


5 %

Different Water


0.4


0.4



0 %

Water Dispensers





Different


7.6


8.4


(0.8)


-10 %

Income, web as reported


$                 69.9


$                     64.3


$              5.6


9 %

International alternate impression


8.6



8.6


n/a

Income excluding overseas alternate impression


$                 78.5


$                     64.3


$            14.2


22 %

ABOUT PRIMO WATER CORPORATION

Primo Water Company is a number one pure-play water options supplier in North America and Europe and generates roughly $2.1 billion in annual income. Primo operates largely underneath a recurring razor/razorblade income mannequin. The razor in Primo’s income mannequin is its trade main line-up of modern and modern water dispensers, that are bought by retailers and on-line at numerous worth factors. The dispensers assist enhance family penetration which drives recurring purchases of Primo’s razorblade providing. Primo’s razorblade providing is comprised of Water Direct, Water Trade, and Water Refill. By way of its Water Direct enterprise, Primo delivers sustainable hydration options throughout its 21-country footprint direct to the shopper’s door, whether or not at dwelling or to companies. By way of its Water Trade and Water Refill companies, Primo presents pre-filled and reusable containers at roughly 14,000 places, water dispenser gross sales at roughly 9,000 places and water refill items at roughly 24,000 places, respectively. Primo additionally presents water filtration items throughout its 21-country footprint.

Primo’s water options increase shopper entry to purified, spring, and mineral water to advertise a more healthy, extra sustainable way of life whereas concurrently decreasing plastic waste and air pollution. Primo is dedicated to its water stewardship requirements and is proud to associate with the Worldwide Bottled Water Affiliation (IBWA) in North America in addition to with Watercoolers Europe (WE), which guarantee strict adherence to security, high quality, sanitation and regulatory requirements for the advantage of shopper safety.

Primo is headquartered in Tampa, Florida (USA). For extra info, go to www.primowatercorp.com.

Non-GAAP Measures
To complement its reporting of monetary measures decided in accordance with U.S. GAAP (Typically Accepted Accounting Rules), Primo makes use of sure non-GAAP monetary measures.  Primo excludes from GAAP income the impression of overseas alternate and the impression of the now-exited small-format single-use retail bottled water enterprise in North America to separate the impression of this stuff from Primo’s outcomes of operations.  Primo additionally makes use of Adjusted web earnings (loss), Adjusted web earnings (loss) per diluted share, Adjusted EBITDA and Adjusted EBITDA margin to separate the impression of sure gadgets from the underlying enterprise.  As a result of Primo makes use of these adjusted monetary ends in the administration of its enterprise, administration believes this supplemental info is helpful to buyers for his or her unbiased analysis and understanding of Primo’s underlying enterprise efficiency and the efficiency of its administration.  Moreover, Primo dietary supplements its reporting of web money supplied by (utilized in) working actions from persevering with operations decided in accordance with GAAP by excluding additions to property, plant and gear and additions to intangible belongings to current free money movement, and by excluding the gadgets recognized on the displays hereto to current adjusted free money movement, which administration believes gives helpful info to buyers in assessing our efficiency, evaluating Primo’s efficiency to the efficiency of the Firm’s peer group and assessing the Firm’s skill to service debt and finance strategic alternatives, which embrace investing in Primo’s enterprise, making strategic acquisitions, paying dividends, and strengthening the stability sheet. With respect to the Firm’s expectations of its future efficiency, the Firm’s reconciliations of Q3 2022 and full 12 months 2022 Adjusted EBITDA and 2024 Adjusted EBITDA should not accessible, because the Firm is unable to quantify sure quantities to the diploma of precision that might be required within the related GAAP measures with out unreasonable effort. These things embrace taxes, curiosity prices that might happen if the Firm issued debt, and prices to amass and or promote a enterprise if the Firm executed such transactions, which might considerably have an effect on our monetary outcomes. These things depend upon extremely variable components and any such reconciliations would indicate a level of precision that might be complicated or deceptive to buyers. Primo expects the variability of those components to have a major, and probably unpredictable, impression on the Firm’s future GAAP monetary outcomes. The non-GAAP monetary measures described above are along with, and never meant to be thought of superior to, or an alternative to, Primo’s monetary statements ready in accordance with GAAP. As well as, the non-GAAP monetary measures included on this earnings announcement mirror administration’s judgment of explicit gadgets, and could also be totally different from, and subsequently is probably not corresponding to, equally titled measures reported by different corporations.

Protected Harbor Statements
This press launch incorporates forward-looking statements throughout the that means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Trade Act of 1934 conveying administration’s expectations as to the longer term primarily based on plans, estimates and projections on the time Primo makes the statements. Ahead-looking statements contain inherent dangers and uncertainties and Primo cautions you that a number of vital components might trigger precise outcomes to vary materially from these contained in any such forward-looking assertion. The forward-looking statements contained on this press launch embrace, however should not restricted to, statements associated to the quantity of shares that could be repurchased underneath the share repurchase program, future monetary and working traits and outcomes (together with Primo’s outlook on third quarter and full 12 months 2022 income and Adjusted EBITDA and Primo’s multi-year development algorithm), and associated issues. The forward-looking statements are primarily based on assumptions concerning administration’s present plans and estimates. Administration believes these assumptions to be affordable, however there isn’t a assurance that they’ll show to be correct.

Components that might trigger precise outcomes to vary materially from these described on this press launch embrace, amongst others: the impression of the unfold of COVID-19, associated authorities actions and Primo’s technique in response thereto on our enterprise, monetary situation and outcomes of operations; Primo’s skill to compete efficiently within the markets wherein it operates; fluctuations in commodity costs and Primo’s skill to go on elevated prices to its clients or hedge in opposition to such rising prices, and the impression of these elevated costs on its volumes; Primo’s skill to take care of favorable preparations and relationships with its suppliers; Primo’s skill to handle its operations efficiently; forex fluctuations that adversely have an effect on the alternate between currencies together with the U.S. greenback, the British pound sterling, the Euro and the Canadian greenback; the impression on Primo’s monetary outcomes from uncertainty within the monetary markets and different adversarial adjustments on the whole financial situations, together with inflation and rates of interest; any disruption to manufacturing at Primo’s manufacturing services; Primo’s skill to take care of entry to its water sources; the impression of local weather change on Primo’s enterprise; Primo’s skill to guard its mental property; the seasonal nature of Primo’s enterprise and the impact of adversarial climate situations; the impression of nationwide, regional and international occasions, together with these of a political, financial, enterprise and aggressive nature; Primo’s skill to totally understand the potential good thing about transactions or different strategic alternatives that it pursues; Primo’s skill to comprehend price synergies of its acquisitions as a consequence of integration difficulties and different challenges; Primo’s publicity to intangible asset danger; Primo’s skill to satisfy its obligations underneath its debt agreements, and dangers of additional will increase to its indebtedness; Primo’s skill to take care of compliance with the covenants and situations underneath its debt agreements; fluctuations in rates of interest, which might enhance Primo’s borrowing prices; Primo’s skill to recruit, retain and combine new administration; Primo’s skill to resume its collective bargaining agreements every now and then on passable phrases; compliance with product well being and security requirements; legal responsibility for harm or sickness attributable to the consumption of contaminated merchandise; legal responsibility and harm to Primo’s fame because of litigation or authorized proceedings; adjustments within the authorized and regulatory atmosphere wherein Primo operates; Primo’s skill to adequately tackle the challenges and dangers related to its worldwide operations and tackle difficulties in complying with legal guidelines and laws together with the U.S. International Corrupt Practices Act and the U.Okay. Bribery Act of 2010; the impression on Primo’s tax obligations and efficient tax charge arising from adjustments in native tax legal guidelines or international locations adopting extra aggressive interpretations of tax legal guidelines; disruptions in Primo’s info methods; Primo’s skill to securely preserve its clients’ confidential or bank card info, or different personal information regarding Primo’s staff or the Firm; Primo’s skill to take care of its quarterly dividend; or credit standing adjustments.

The foregoing record of things will not be exhaustive. Readers are cautioned to not place undue reliance on any forward-looking statements, which communicate solely as of the date hereof. Readers are urged to fastidiously overview and think about the assorted disclosures, together with however not restricted to danger components contained in Primo’s Annual Report on Kind 10-Okay and its quarterly reviews on Kind 10-Q, in addition to different filings with the securities commissions. Primo doesn’t undertake to replace or revise any of those statements contemplating new info or future occasions, besides as expressly required by relevant legislation. 

Web site: www.primowatercorp.com

PRIMO WATER CORPORATION







EXHIBIT 1

CONSOLIDATED STATEMENTS OF OPERATIONS








(in hundreds of thousands of U.S. {dollars}, besides share and per share quantities)





Unaudited

























For the Three Months Ended


For the Six Months Ended


July 2, 2022


July 3, 2021


July 2, 2022


July 3, 2021

Income, web

$               571.4


$                  526.1


$            1,097.5


$               1,004.5

Price of gross sales

239.1


228.9


465.6


442.8

Gross revenue

332.3


297.2


631.9


561.7

Promoting, basic and administrative bills

291.6


259.9


569.9


507.9

Loss on disposal of property, plant and gear, web

0.1


3.3


1.8


5.4

Acquisition and integration bills

4.9


2.4


9.2


3.7

Impairment fees

29.1



29.1


Working earnings

6.6


31.6


21.9


44.7

Different expense, web

10.7


25.6


13.4


25.2

Curiosity expense, web

17.0


17.7


33.9


36.7

Loss earlier than earnings taxes

(21.1)


(11.7)


(25.4)


(17.2)

Revenue tax expense (profit)

1.4


(3.4)


3.8


1.3

Internet Loss

$                (22.5)


$                     (8.3)


$                (29.2)


$                   (18.5)









Internet loss per frequent share
















Primary

$                (0.14)


$                   (0.05)


$                (0.18)


$                   (0.11)

Diluted

$                (0.14)


$                   (0.05)


$                (0.18)


$                   (0.11)









Weighted common frequent shares excellent (in 1000’s)








Primary

161,149


161,561


161,038


161,097

Diluted

161,149


161,561


161,038


161,097

















PRIMO WATER CORPORATION



EXHIBIT 2

CONSOLIDATED BALANCE SHEETS




(in hundreds of thousands of U.S. {dollars}, besides share quantities)




Unaudited









July 2, 2022


January 1, 2022

ASSETS




Present belongings




Money and money equivalents

$                     98.5


$                        128.4

Accounts receivable, web of allowance of $22.7 ($20.8 as of January 1, 2022)

283.6


261.6

Inventories

109.7


94.6

Pay as you go bills and different present belongings

63.5


25.2

Complete present belongings

555.3


509.8

Property, plant and gear, web

678.6


718.1

Working lease right-of-use-assets

168.2


177.4

Goodwill

1,285.6


1,321.4

Intangible belongings, web

912.2


969.8

Different long-term belongings, web

29.4


26.9

Complete belongings

$                3,629.3


$                    3,723.4

LIABILITIES AND EQUITY




Present liabilities




Quick-term borrowings

$                   235.2


$                        222.1

Present maturities of long-term debt

17.1


17.7

Accounts payable and accrued liabilities

430.2


437.7

Present working lease obligations

32.5


32.3

Complete present liabilities

715.0


709.8

Lengthy-term debt

1,274.5


1,321.1

Working lease obligations

139.4


148.7

Deferred tax liabilities

157.9


158.8

Different long-term liabilities

65.7


64.9

Complete liabilities

2,352.5


2,403.3

Shareholders’ Fairness




Frequent shares, no par worth -161,209,111 (January 1, 2022 – 160,732,552) shares issued

1,292.6


1,286.9

Extra paid-in-capital

87.3


85.9

(Gathered deficit) retained earnings

(35.7)


16.4

Gathered different complete loss

(67.4)


(69.1)

Complete shareholders’ fairness

1,276.8


1,320.1

Complete liabilities and shareholders’ fairness

$                3,629.3


$                    3,723.4

PRIMO WATER CORPORATION







EXHIBIT 3

CONSOLIDATED STATEMENTS OF CASH FLOWS








(in hundreds of thousands of U.S. {dollars})








Unaudited









For the Three Months Ended


For the Six Months Ended


July 2, 2022


July 3, 2021


July 2, 2022


July 3, 2021









Money flows from working actions:








Internet Loss

$              (22.5)


$                    (8.3)


$              (29.2)


$                 (18.5)

Changes to reconcile web loss to money flows from working actions of continuous operations:








Depreciation and amortization

60.2


52.0


121.4


105.1

Amortization of financing charges

0.8


0.9


1.7


1.7

Share-based compensation expense

4.2


3.8


7.5


6.2

(Profit) provision for deferred earnings taxes

(0.1)


(4.2)


1.5


(0.6)

Acquire on sale of enterprise



(0.4)


Loss on extinguishment of debt


27.2



27.2

Impairment fees

29.1



29.1


Loss on disposal of property, plant and gear, web

0.1


3.3


1.8


5.4

Different non-cash gadgets

11.0


(1.2)


13.1


(1.0)

Change in working belongings and liabilities, web of acquisitions:








Accounts receivable

(21.3)


(52.2)


(33.2)


(61.9)

Inventories

(8.0)


(6.3)


(19.1)


(3.1)

Pay as you go bills and different present belongings

1.0


(2.0)


(5.2)


(4.2)

Different belongings

0.7


0.2



0.3

Accounts payable and accrued liabilities and different liabilities

11.5


46.4


1.3


31.7

Internet money supplied by working actions from persevering with operations

66.7


59.6


90.3


88.3

Money flows from investing actions of continuous operations:








Acquisitions, web of money acquired

(7.1)


(0.3)


(7.4)


(0.3)

Additions to property, plant and gear

(46.6)


(34.8)


(85.2)


(61.8)

Additions to intangible belongings

(2.4)


(1.8)


(4.9)


(4.1)

Proceeds from sale of property, plant and gear

0.6


0.6


1.0


0.7

Different investing actions

(0.1)



0.4


Internet money utilized in investing actions from persevering with operations

(55.6)


(36.3)


(96.1)


(65.5)

Money flows from financing actions of continuous operations:








Funds of long-term debt

(5.2)


(753.6)


(9.7)


(757.0)

Issuance of long-term debt


750.0



750.0

Proceeds from short-term borrowings

10.0


45.0


10.0


45.0

Funds on short-term borrowings


(10.0)



(10.0)

Premiums and prices paid upon extinguishment of long-term debt


(20.6)



(20.6)

Issuance of frequent shares

0.4


14.7


1.6


15.7

Frequent shares repurchased and canceled

(0.2)


(13.2)


(2.0)


(16.3)

Financing charges


(10.6)



(11.3)

Dividends paid to frequent shareholders

(11.6)


(9.9)


(22.9)


(19.6)

Fee of deferred consideration for acquisitions


(0.1)


(0.1)


(1.8)

Different financing actions

0.7


(0.9)


4.6


4.3

Internet money utilized in financing actions from persevering with operations

(5.9)


(9.2)


(18.5)


(21.6)

Money flows from discontinued operations:








Working actions of discontinued operations


(2.6)



(1.8)

Investing actions of discontinued operations




Financing actions of discontinued operations




Internet money utilized in discontinued operations


(2.6)



(1.8)

Impact of alternate charge adjustments on money

(1.0)


0.5


(1.9)


(0.3)

Internet enhance (lower) in money, money equivalents and restricted money

4.2


12.0


(26.2)


(0.9)

Money and money equivalents and restricted money, starting of interval

98.0


102.2


128.4


115.1

Money and money equivalents and restricted money, finish of interval

$              102.2


$                 114.2


$              102.2


$                 114.2









Money and money equivalents and restricted money:








Money and money equivalents

$                98.5


$                 114.2


$                98.5


$                 114.2

Money included in pay as you go bills and different present belongings

3.7



3.7


Complete

$              102.2


$                 114.2


$              102.2


$                 114.2









PRIMO WATER CORPORATION










EXHIBIT 4


SEGMENT INFORMATION












(in hundreds of thousands of U.S. {dollars}, besides share quantities)










Unaudited














For the Three Months Ended July 2, 2022



North America


Europe


Different


Eliminations


Complete


Income, web












Water Direct/Water Trade


$               321.1


$                 53.7


$                  11.7


$                     —


$               386.5


Water Refill/Water Filtration


47.3


8.2


0.7



56.2


Different Water


22.2


0.4


21.5



44.1


Water Dispensers


18.5





18.5


Different


27.6


7.6


30.9



66.1


Complete


$               436.7


$                 69.9


$                  64.8


$                     —


$               571.4














Gross revenue


$               260.4


$                 46.8


$                  25.1


$                     —


$               332.3


Gross margin %


59.6 %


67.0 %


38.7 %


— %


58.2 %


Promoting, basic and administrative


$               208.6


$                 45.9


$                  37.1


$                     —


$               291.6


SG&A % of income


47.8 %


65.7 %


57.3 %


— %


51.0 %


Working earnings (loss)


$                 48.3


$                (29.1)


$                 (12.6)


$                     —


$                   6.6


Depreciation and amortization


$                 44.3


$                 10.1


$                    5.8


$                     —


$                 60.2
















For the Three Months Ended July 3, 2021



North America


Europe


Different


Eliminations


Complete


Income, web












Water Direct/Water Trade


$               264.9


$                 47.7


$                 10.4


$                     —


$               323.0


Water Refill/Water Filtration


45.1


7.8


0.2



53.1


Different Water


42.2


0.4


22.0



64.6


Water Dispensers


17.6





17.6


Different


26.9


8.4


32.8


(0.3)


67.8


Complete


$               396.7


$                 64.3


$                 65.4


$                  (0.3)


$               526.1














Gross revenue


$               225.6


$                 44.2


$                 27.4


$                     —


$               297.2


Gross margin %


56.9 %


68.7 %


41.9 %


— %


56.5 %


Promoting, basic and administrative


$               180.6


$                 46.0


$                 33.3


$                     —


$               259.9


SG&A % of income


45.5 %


71.5 %


50.9 %


— %


49.4 %


Working earnings (loss)


$                 40.1


$                  (1.6)


$                  (6.9)


$                     —


$                 31.6


Depreciation and amortization


$                 36.5


$                   9.9


$                   5.6


$                     —


$                 52.0
















For the Six Months Ended July 2, 2022



North America


Europe


Different


Eliminations


Complete


Income, web












Water Direct/Water Trade


$               599.4


$               101.9


$                 22.5


$                     —


$               723.8


Water Refill/Water Filtration


89.5


16.4


1.2



107.1


Different Water


56.2


0.8


37.5



94.5


Water Dispensers


32.7





32.7


Different


56.0


15.1


68.3



139.4


Complete


$               833.8


$               134.2


$               129.5


$                     —


$            1,097.5














Gross revenue


$               492.4


$                 90.6


$                 48.9


$                     —


$               631.9


Gross Margin %


59.1 %


67.5 %


37.8 %


— %


57.6 %


Promoting, basic and administrative bills


$               408.3


$                 92.1


$                 69.5


$                     —


$               569.9


SG&A % of Income


49.0 %


68.6 %


53.7 %


— %


51.9 %


Working earnings (loss)


$                 76.6


$                (32.7)


$                (22.0)


$                     —


$                 21.9


Depreciation and amortization


$                 89.6


$                 19.9


$                 11.9


$                     —


$               121.4
















For the Six Months Ended July 3, 2021



North America


Europe


Different


Eliminations


Complete


Income, web












Water Direct/Water Trade


$               503.7


$                 88.0


$                 18.9


$                     —


$               610.6


Water Refill/Water Filtration


90.2


15.7


0.2



106.1


Different Water


83.1


0.6


37.2



120.9


Water Dispensers


32.6





32.6


Different


52.6


15.6


67.0


(0.9)


134.3


Complete


$               762.2


$               119.9


$               123.3


$                  (0.9)


$            1,004.5














Gross revenue


$               430.1


$                 82.2


$                 49.4


$                     —


$               561.7


Gross Margin %


56.4 %


68.6 %


40.1 %


— %


55.9 %


Promoting, basic and administrative bills


$               356.4


$                 87.1


$                 64.4


$                     —


$               507.9


SG&A % of Income


46.8 %


72.6 %


52.2 %


— %


50.6 %


Working earnings (loss)


$                 66.2


$                  (5.0)


$                (16.5)


$                     —


$                 44.7


Depreciation and amortization


$                 74.3


$                 19.6


$                 11.2


$                     —


$               105.1















PRIMO WATER CORPORATION


EXHIBIT 5


SUPPLEMENTARY INFORMATION – NON-GAAP – ANALYSIS OF REVENUE AND GROSS PROFIT BY REPORTING SEGMENT

(in hundreds of thousands of U.S. {dollars}, besides share quantities)











Unaudited























For the Three Months Ended July 2, 2022


North America


Europe


Different


Eliminations


Primo


Change in income

$        40.0


$             5.6


$        (0.6)


$              0.3


$      45.3


Impression of overseas alternate (a)

$          0.7


$             8.6


$         3.9


$                —


$      13.2


Change excluding overseas alternate

$        40.7


$           14.2


$         3.3


$              0.3


$      58.5


Proportion change in income

10.1 %


8.7 %


(0.9) %


(100.0) %


8.6 %


Proportion change in income excluding overseas alternate

10.3 %


22.1 %


5.0 %


(100.0) %


11.1 %














For the Six Months Ended July 2, 2022


North America


Europe


Different


Eliminations


Primo


Change in income

$        71.6


$           14.3


$         6.2


$              0.9


$      93.0


Impression of overseas alternate (a)

$          0.7


$           13.1


$         4.0


$                —


$      17.8


Change excluding overseas alternate

$        72.3


$           27.4


$       10.2


$              0.9


$    110.8


Proportion change in income

9.4 %


11.9 %


5.0 %


(100.0) %


9.3 %


Proportion change in income excluding overseas alternate

9.5 %


22.9 %


8.3 %


(100.0) %


11.0 %














For the Three Months Ended July 2, 2022


North America


Europe


Different


Eliminations


Primo


Change in gross revenue

$        34.8


$             2.6


$        (2.3)


$               —


$      35.1


Impression of overseas alternate (a)

$          0.4


$             5.9


$         0.7


$               —


$        7.0


Change excluding overseas alternate

$        35.2


$             8.5


$        (1.6)


$               —


$      42.1


Proportion change in gross revenue

15.4 %


5.9 %


(8.4) %


— %


11.8 %


Proportion change in gross revenue excluding overseas alternate

15.6 %


19.2 %


(5.8) %


— %


14.2 %




































For the Six Months Ended July 2, 2022


North America


Europe


Different


Eliminations


Primo


Change in gross revenue

$        62.3


$             8.4


$        (0.5)


$               —


$      70.2


Impression of overseas alternate (a)

$          0.4


$             9.2


$         0.2


$               —


$        9.8


Change excluding overseas alternate

$        62.7


$           17.6


$        (0.3)


$               —


$      80.0


Proportion change in gross revenue

14.5 %


10.2 %


(1.0) %


— %


12.5 %


Proportion change in gross revenue excluding overseas alternate

14.6 %


21.4 %


(0.6) %


— %


14.2 %













(a) Impression of overseas alternate is the distinction between the present interval income and gross revenue translated using the present interval common overseas alternate charges much less the present interval income and gross revenue translated using the prior interval common overseas alternate charges.

PRIMO WATER CORPORATION







EXHIBIT 6

SUPPLEMENTARY INFORMATION – NON-GAAP – EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION

(EBITDA)








(in hundreds of thousands of U.S. {dollars}, besides share quantities)








Unaudited

















For the Three Months Ended


For the Six Months Ended


July 2, 2022


July 3, 2021


July 2, 2022


July 3, 2021









Internet Loss

$          (22.5)


$                (8.3)


$          (29.2)


$              (18.5)

Curiosity expense, web

17.0


17.7


33.9


36.7

Revenue tax expense (profit)

1.4


(3.4)


3.8


1.3

Depreciation and amortization

60.2


52.0


121.4


105.1

EBITDA

$           56.1


$               58.0


$         129.9


$             124.6









Acquisition and integration prices (a)

4.9


2.4


9.2


3.7

Share-based compensation prices (b)

4.2


3.8


7.5


6.2

COVID-19 prices (c)


0.5



1.2

Impairment fees (d)

29.1



29.1


International alternate and different losses (positive aspects), web (e)

11.5


(1.0)


15.4


(1.1)

Loss on disposal of property, plant and gear, web (f)

0.1


3.3


1.8


5.4

Loss on extinguishment of long-term debt (g)


27.2



27.2

Different changes, web (h)

2.1


5.3


3.0


8.5

Adjusted EBITDA

$         108.0


$               99.5


$         195.9


$             175.7









Income, web

$         571.4


$             526.1


$      1,097.5


$          1,004.5

Adjusted EBITDA margin %

18.9 %


18.9 %


17.8 %


17.5 %











For the Three Months


For the Six Months Ended


Location in Consolidated
Statements of Operations

July 2, 2022


July 3, 2021


July 2, 2022


July 3, 2021



(Unaudited)


(Unaudited)

(a) Acquisition and integration prices

Acquisition and integration
bills

$                4.9


$                 2.4


$                9.2


$                 3.7

(b) Share-based compensation prices

Promoting, basic and
administrative bills

4.2


3.8


7.5


6.2

(c) COVID-19 prices

Promoting, basic and
administrative bills


0.5



1.2

(d) Impairment fees

Impairment fees

29.1



29.1


(e) International alternate and different
losses (positive aspects), web

Different expense, web

11.5


(1.0)


15.4


(1.1)

(f) Loss on disposal of property,
plant and gear, web

Loss on disposal of property,
plant and gear, web

0.1


3.3


1.8


5.4

(g) Loss on extinguishment of
long-term debt

Different expense, web


27.2



27.2

(h) Different changes, web

Different expense, web

(0.4)


(0.2)


(1.7)


(0.5)


Promoting, basic and
administrative bills

2.5


5.5


4.7


9.0

PRIMO WATER CORPORATION



EXHIBIT 7

SUPPLEMENTARY INFORMATION – NON-GAAP – FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

(in hundreds of thousands of U.S. {dollars})




Unaudited









For the Three Months Ended


July 2, 2022


July 3, 2021





Internet money supplied by working actions from persevering with operations

$                               66.7


$                               59.6

Much less:  Additions to property, plant, and gear

(46.6)


(34.8)

Much less:  Additions to intangible belongings (a)

(2.4)


(1.8)

Free Money Circulation

$                               17.7


$                               23.0





Acquisition and integration money prices

3.1


2.4

COVID-19 associated money prices


0.5

Deferred payroll tax associated money prices – authorities packages


0.5

Adjusted Free Money Circulation

$                               20.8


$                               26.4






For the Six Months Ended


July 2, 2022


July 3, 2021





Internet money supplied by working actions from persevering with operations

$                               90.3


$                               88.3

Much less:  Additions to property, plant, and gear

(85.2)


(61.8)

Much less:  Additions to intangible belongings (a)

(4.9)


(4.1)

Free Money Circulation

$                                 0.2


$                               22.4





Acquisition and integration money prices

8.1


7.3

COVID-19 associated money prices


1.5

Deferred payroll tax associated money prices – authorities packages


0.9

Adjusted Free Money Circulation

$                                 8.3


$                               32.1





a) Prior interval has been recast to incorporate additions to intangible belongings





PRIMO WATER CORPORATION

 







EXHIBIT 8

SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS





(in hundreds of thousands of U.S. {dollars}, besides share quantities)








Unaudited









For the Three Months Ended


For the Six Months Ended


July 2, 2022


July 3, 2021


July 2, 2022


July 3, 2021

Internet loss (as reported)

$                      (22.5)


$                         (8.3)


$                       (29.2)


$                       (18.5)









Changes:








Amortization expense of buyer lists

12.1


12.5


25.0


24.7

Acquisition and integration prices

4.9


2.4


9.2


3.7

Share-based compensation prices

4.2


3.8


7.5


6.2

COVID-19 prices


0.5



1.2

Impairment fees

29.1



29.1


International alternate and different losses (positive aspects), web

11.5


(1.0)


15.4


(1.1)

Loss on extinguishment of long-term debt


27.2



27.2

Different changes, web

2.1


5.3


3.0


8.5

Tax impression of changes (a)

(8.1)


(14.9)


(12.8)


(15.1)

Adjusted web earnings

$                        33.3


$                        27.5


$                        47.2


$                        36.8









Earnings Per Share (as reported)








Internet loss

$                      (22.5)


$                         (8.3)


$                       (29.2)


$                       (18.5)









Primary EPS

$                      (0.14)


$                       (0.05)


$                       (0.18)


$                       (0.11)

Diluted EPS

$                      (0.14)


$                       (0.05)


$                       (0.18)


$                       (0.11)









Weighted common frequent shares excellent (in 1000’s)








Primary

161,149


161,561


161,038


161,097

Diluted

161,149


161,561


161,038


161,097









Adjusted Earnings Per Share (Non-GAAP)








Adjusted web earnings (Non-GAAP)

$                        33.3


$                        27.5


$                        47.2


$                        36.8

Adjusted diluted EPS (Non-GAAP)

$                        0.21


$                        0.17


$                        0.29


$                        0.23

Diluted weighted common frequent shares excellent (in 1000’s) (Non-GAAP) (b)

161,894


163,097


161,934


162,819









(a) The tax impact for adjusted web earnings is predicated upon an evaluation of the statutory tax therapy and the relevant tax charge for the jurisdiction wherein the pre-tax adjusting gadgets incurred and for which realization of the ensuing tax profit (if any) is anticipated. A decreased or 0% tax charge is utilized to jurisdictions the place we don’t anticipate to comprehend a tax profit as a consequence of a historical past of working losses or different components leading to a valuation allowance associated to deferred tax belongings.









(b) Consists of the impression of dilutive securities of 745 and 896 for the three and 6 months ended July 2, 2022 and 1,536 and 1,722 for the three and 6 months ended July 3, 2021, respectively.  These dilutive securities have been excluded from GAAP diluted weighted common frequent shares excellent as a consequence of web loss from persevering with operations reported in these intervals.

SOURCE Primo Water Company

Related posts

AutoFi Closes $85 Million in Funding to Speed up Progress

admin

Zacks: Analysts Anticipate Heartland Monetary USA, Inc. (NASDAQ:HTLF) Will Announce Earnings of $1.20 Per Share

admin

We The Patriots USA Vows to Make Discrimination Primarily based on

admin