EXHIBIT 99.1
COTT CORPORATION REPORTS RECORD RESULTS;
SALES UP 18% IN FIRST QUARTER;
EARNINGS PER SHARE RISE 36%;
COMPANY RAISES GUIDANCE FOR 2003
(All information in U.S. dollars)
TORONTO - April 16, 2003 - Extending its profitable operating performance into a
fifth year, Cott Corporation (NYSE:COT; TSX:BCB) today announced record sales
and earnings per share for the first quarter ended March 29, 2003. The Company
reported operating income of $24.8 million, up 35% from last year's $18.4
million.
"Fueled by growth with key customers, this performance adds to Cott's forward
momentum," said Frank E. Weise, Cott's chairman, president and chief executive
officer. "The acceleration in sales is a result of the enhanced retailer brand
offerings to existing customers and the Company's relentless focus on meeting
the needs of our customers. 2003 is expected to be another winning year for our
customers, suppliers, employees and shareowners."
Sales in the first quarter were up 18% to $295 million compared to $250 million
last year. Excluding the impact of acquisitions sales were up 13%. The Company's
U.S. business unit led with a 21% increase versus the same period last year, a
16% increase excluding the impact of acquisitions. Sales in Canada were down 1%,
while in the U.K./Europe business unit, sales rose by 6%. The International
unit, which includes RC International and CEMSA, the recently formed Mexican
venture, reported sales of $7 million.
Led by gains in plant efficiencies, particularly in the U.K., gross margin for
the quarter was 19.1%, up from 18.9% in the fourth quarter 2002 and 18.4% in the
first quarter last year. Earnings from continuing operations were $0.15 per
diluted share, an increase of 36% from last year's reported $0.11 (before
one-time charges).
During the quarter, the Company adopted FAS 145, which no longer allows early
debt redemption costs to be recorded as extraordinary items. As a consequence,
last year's results have been revised in Exhibits 1 and 3, the consolidated
statements of income and cash flows. Tables with supplemental information
attached as Exhibits 2 and 4 show First Quarter 2002 on both an as reported and
on a revised basis.
The Company also amended its guidance for the full year, raising its estimate of
earnings per diluted share to $0.93-$0.96 from $0.90 to $0.92. Sales are
expected to increase 10-12% up from 9-11%. EBITDA is expected to reach $187
million from $185 million (see below for discussion of EBITDA). Capital spending
is expected to be held to $50 million in 2003.
* * *
FIRST QUARTER RESULTS CONFERENCE CALL
Cott Corporation will host a conference call today (April 16, 2003) at
approximately 11:30 AM ET to discuss these 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: 800-814-4860
International: 416-640-4127
ANNUAL GENERAL MEETING
Cott Corporation's annual general meeting of shareowners will take place on
Thursday, April 17, 2003 at 8:30 AM ET.
4
WEBCAST
To access the conference call today and the Annual General Meeting on April 17th
over the Internet, please visit Cott's website at http://www.cott.com on both
dates at least fifteen minutes early to register, download, 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 these events
until April 24, 2003. First quarter 2003 supplementary financial information for
the conference call is available in Investor Relations/Financial Reports section
of Cott's website.
ABOUT COTT CORPORATION
Cott Corporation is the world's largest retailer brand soft drink supplier, with
the leading take home carbonated soft drink market shares in this segment in its
core markets of the United States, Canada and the United Kingdom.
NON-GAAP MEASURE
EBITDA is defined as earnings from continuing operations before interest, income
taxes, depreciation, amortization and unusual items. Although it is not a
recognized measure of performance under U.S. GAAP, EBITDA is presented because
it is a widely accepted financial indicator of a company's ability to incur and
service indebtedness. EBITDA should not be considered as an alternative to
income from continuing operations, net income, cash flows from operations or any
other indicator of Cott's performance or liquidity, determined in accordance
with U.S. GAAP. A table reconciling EBITDA with appropriate GAAP financial
statement measures is included as an exhibit to this release.
SAFE HARBOR STATEMENTS
This press release contains forward-looking statements 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 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, loss of key customers 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 CONTACTS
Media Relations
Rod Jimenez Tel: (416) 203-5606
Investor Relations
Edmund O'Keeffe Tel: (416) 203-5617
5
COTT CORPORATION EXHIBIT 1
CONSOLIDATED STATEMENTS OF INCOME
(IN MILLIONS OF US DOLLARS EXCEPT PER SHARE AMOUNTS, US GAAP)
UNAUDITED
FOR THE THREE MONTHS ENDED
----------------------------------
MARCH 29, 2003 MARCH 30, 2002(1)
-------------- --------------
SALES $ 295.3 $ 250.0
Cost of sales 238.9 203.9
--------- ---------
GROSS PROFIT 56.4 46.1
Selling, general and
administrative expenses 31.6 27.7
--------- ---------
OPERATING INCOME 24.8 18.4
Other expense, net 0.5 14.0
Interest expense, net 7.7 9.3
Minority interest 0.6 0.5
--------- ---------
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY LOSS 16.0 (5.4)
Income taxes (5.4) 3.4
Equity loss (0.1) --
--------- ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS 10.5 (2.0)
Cumulative effect of change in accounting principle -- (44.8)
--------- ---------
NET INCOME (LOSS) $ 10.5 $ (46.8)
========= =========
VOLUME - 8 OZ EQUIVALENT CASES 208.1 173.3
INCOME PER SHARE - BASIC
Income (loss) from continuing operations $ 0.15 $ (0.03)
Cumulative effect of change in accounting principle $ -- $ (0.73)
Net income (loss) $ 0.15 $ (0.76)
INCOME PER SHARE - DILUTED
Income (loss) from continuing operations $ 0.15 $ (0.03)
Cumulative effect of change in accounting principle $ -- $ (0.73)
Net income (loss) $ 0.15 $ (0.76)
(1) Revised to reflect the implementation of SFAS 145, which no longer allows
early debt redemption costs to be recorded as extraordinary items.
COTT CORPORATION EXHIBIT 2
SUPPLEMENTAL INCOME INFORMATION
(IN MILLIONS OF US DOLLARS EXCEPT PER SHARE AMOUNTS, US GAAP)
UNAUDITED
FOR THE THREE MONTHS ENDED
----------------------------------------------------------
REVISED AS REPORTED
MARCH 29, 2003 MARCH 30, 2002(1) MARCH 30, 2002(2)
-------------- -------------- --------------
SALES $ 295.3 $ 250.0 $ 250.0
Cost of sales 238.9 203.9 203.9
--------- --------- ---------
GROSS PROFIT 56.4 46.1 46.1
Selling, general and
administrative expenses 31.6 27.7 27.7
--------- --------- ---------
OPERATING INCOME 24.8 18.4 18.4
Other expense, net 0.5 14.0(3) (0.1)(3)
Interest expense, net 7.7 9.3 9.3
Minority interest 0.6 0.5 0.5
--------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY LOSS 16.0 (5.4) 8.7
Income taxes (5.4) 3.4(3) (1.1)(3)
Equity loss (0.1) -- --
--------- --------- ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS 10.5 (2.0) 7.6
Extraordinary item -- -- (9.6)
Cumulative effect of change in accounting principle -- (44.8) (44.8)
--------- --------- ---------
NET INCOME (LOSS) $ 10.5 $ (46.8) $ (46.8)
========= ========= =========
VOLUME - 8 OZ EQUIVALENT CASES 208.1 173.3 173.3
INCOME PER SHARE - BASIC
Income (loss) from continuing operations $ 0.15 $ (0.03) $ 0.12
Extraordinary item $ -- $ -- $ (0.15)
Cumulative effect of change in accounting principle $ -- (0.73) $ (0.73)
Net income (loss) $ 0.15 $ (0.76) $ (0.76)
INCOME PER SHARE - DILUTED
Income (loss) from continuing operations $ 0.15 $ (0.03) $ 0.11
Extraordinary item $ -- $ -- $ (0.15)
Cumulative effect of change in accounting principle $ -- $ (0.73) $ (0.73)
Net income (loss) $ 0.15 $ (0.76) $ (0.76)
(1) Revised to reflect the implementation of SFAS 145, which no longer allows
early debt redemption costs to be recorded as extraordinary items.
(2) As reported in April 2002 and based on US GAAP in effect at that time.
(3) As a result of SFAS 145, other expense has been increased by $14.1 million
and income taxes have been reduced by $4.5 million, decreasing income from
continuing operations by $9.6 million or $0.14 per diluted share.
COTT CORPORATION EXHIBIT 3
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS OF US DOLLARS, US GAAP)
UNAUDITED
FOR THE THREE MONTHS ENDED
---------------------------------
MARCH 29, 2003 MARCH 30, 2002(1)
-------------- --------------
OPERATING ACTIVITIES
Income (loss) from continuing operations $ 10.5 $ (2.0)
Depreciation and amortization 12.1 10.3
Amortization of financing fees 0.9 0.5
Deferred income taxes 2.1 (4.2)
Minority interest 0.6 0.5
Equity loss 0.1 --
Other non-cash items 0.3 4.5
Net change in non-cash working capital from
continuing operations (1.7) (24.8)
-------- ---------
Cash provided by (used in) operating activities 24.9 (15.2)
-------- ---------
INVESTING ACTIVITIES
Additions to property, plant and equipment (10.1) (10.7)
Acquisitions and equity investments (0.3) (1.8)
Proceeds from disposal of property, plant & equipment -- 0.2
Other -- (0.8)
-------- ---------
Cash used in investing activities (10.4) (13.1)
-------- ---------
FINANCING ACTIVITIES
Payments of long-term debt (38.0) (277.6)
Short-term borrowings 21.7 14.5
Decrease in cash in trust -- 297.3
Distributions to subsidiary minority shareowner (1.2) (0.3)
Issue of common shares 1.1 4.7
-------- ---------
Cash provided by (used in) financing activities (16.4) 38.6
-------- ---------
Effect of exchange rate changes on cash -- (0.1)
-------- ---------
NET INCREASE (DECREASE) IN CASH (1.9) 10.2
CASH, BEGINNING OF PERIOD 3.3 3.9
-------- ---------
CASH, END OF PERIOD $ 1.4 $ 14.1
======== =========
(1) Revised to reflect the implementation of SFAS 145, which no longer allows
early debt redemption costs to be recorded as extraordinary items.
COTT CORPORATION EXHIBIT 4
SUPPLEMENTAL CASH FLOW INFORMATION
(IN MILLIONS OF US DOLLARS, US GAAP)
UNAUDITED
FOR THE THREE MONTHS ENDED
------------------------------------------------------
REVISED AS REPORTED
MARCH 29, 2003 MARCH 30, 2002(1) MARCH 30, 2002(2)
--------------- -------------- --------------
OPERATING ACTIVITIES
Income (loss) from continuing operations $ 10.5 $ (2.0) $ 7.6
Depreciation and amortization 12.1 10.3 10.3
Amortization of financing fees 0.9 0.5 0.5
Deferred income taxes 2.1 (4.2) 0.3
Minority interest 0.6 0.5 0.5
Equity loss 0.1 -- --
Other non-cash items 0.3 4.5 1.0
Net change in non-cash working capital from
continuing operations (1.7) (24.8) (24.8)
--------- ---------- ---------
Cash provided by (used in) operating activities 24.9 (15.2) (4.6)
Cash cost of redemption of long-term debt -- -- (10.6)
--------- ---------- ---------
Cash provided by (used in) operating activities 24.9 (15.2) (15.2)
--------- ---------- ---------
INVESTING ACTIVITIES
Additions to property, plant and equipment (10.1) (10.7) (10.7)
Acquisitions and equity investments (0.3) (1.8) (1.8)
Proceeds from disposal of property, plant & equipment -- 0.2 0.2
Other -- (0.8) (0.8)
--------- ---------- ---------
Cash used in investing activities (10.4) (13.1) (13.1)
--------- ---------- ---------
FINANCING ACTIVITIES
Payments of long-term debt (38.0) (277.6) (277.6)
Short-term borrowings 21.7 14.5 14.5
Decrease in cash in trust -- 297.3 297.3
Distributions to subsidiary minority shareowner (1.2) (0.3) (0.3)
Issue of common shares 1.1 4.7 4.7
--------- ---------- ---------
Cash provided by (used in) financing activities (16.4) 38.6 38.6
--------- ---------- ---------
Effect of exchange rate changes on cash -- (0.1) (0.1)
--------- ---------- ---------
NET INCREASE (DECREASE) IN CASH (1.9) 10.2 10.2
CASH, BEGINNING OF PERIOD 3.3 3.9 3.9
--------- ---------- ---------
CASH, END OF PERIOD $ 1.4 $ 14.1 $ 14.1
========= ========== =========
(1) Revised to reflect the implementation of SFAS 145, which no longer allows
early debt redemption costs to be recorded as extraordinary items.
(2) As reported in April 2002 and based on US GAAP in effect at that time.
COTT CORPORATION EXHIBIT 5
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS OF US DOLLARS, US GAAP)
UNAUDITED AUDITED
MARCH 29, 2003 DECEMBER 28, 2002
-------------- -----------------
ASSETS
CURRENT ASSETS
Cash $ 1.4 $ 3.3
Accounts receivable 130.6 136.2
Inventories 87.4 78.0
Prepaid expenses 11.7 7.2
--------- ---------
231.1 224.7
PROPERTY, PLANT AND EQUIPMENT 274.4 273.0
GOODWILL 78.9 77.0
INTANGIBLES AND OTHER ASSETS 207.2 210.7
--------- ---------
$ 791.6 $ 785.4
========= =========
LIABILITIES AND SHAREOWNERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $ 43.0 $ 21.3
Current maturities of long-term debt 17.2 16.5
Accounts payable and accrued liabilities 130.3 127.3
--------- ---------
190.5 165.1
LONG-TERM DEBT 302.9 339.3
OTHER LIABILITIES 37.1 36.2
--------- ---------
530.5 540.6
MINORITY INTEREST 26.0 26.6
SHAREOWNERS' EQUITY
Capital stock 249.2 248.1
Retained earnings 16.4 5.9
Accumulated other comprehensive income (30.5) (35.8)
--------- ---------
235.1 218.2
--------- ---------
$ 791.6 $ 785.4
========= =========
COTT CORPORATION EXHIBIT 6
SEGMENT INFORMATION
(IN MILLIONS OF US DOLLARS, US GAAP)
UNAUDITED
FOR THE THREE MONTHS ENDED
--------------------------------
MARCH 29, 2003 MARCH 30, 2002
-------------- --------------
SALES
USA $ 226.6 $ 187.5
Canada 31.8 32.0
UK & Europe 29.5 27.9
International 7.2 2.6
Corporate & Other 0.2 --
--------- ---------
$ 295.3 $ 250.0
========= =========
OPERATING INCOME (LOSS)
USA $ 25.5 $ 20.3
Canada 0.8 1.8
UK & Europe (0.3) (3.4)
International 1.3 0.6
Corporate & Other (2.5) (0.9)
--------- ---------
$ 24.8 $ 18.4
========= =========
COTT CORPORATION EXHIBIT 7
SUPPLEMENTARY INFORMATION - NON GAAP MEASURES
(IN MILLIONS OF US DOLLARS)
UNAUDITED
FOR THE THREE MONTHS ENDED
-------------------------------
MARCH 29, 2003 MARCH 30, 2002
-------------- --------------
INCOME (LOSS) FROM CONTINUING OPERATIONS $ 10.5 $ (2.0)
Depreciation and amortization 12.1 10.3
Interest expense, net 7.7 9.3
Income taxes 5.4 (3.4)
Debt redemption costs -- 14.1
-------- --------
EBITDA $ 35.7 $ 28.3
======== ========
FOR THE YEAR ENDED JANUARY 3, 2004 -- GUIDANCE
INCOME FROM CONTINUING OPERATIONS $ 69
Depreciation and amortization 51
Interest expense, net 30
Income taxes 37
--------
EBITDA 187
========
EBITDA is defined as earnings from continuing operations before interest, income
taxes, depreciation, amortization and unusual items. EBITDA should not be
considered as an alternative to income from continuing operations, net income or
any other indicator of Cott's performance or to cash flows from operating,
investing or financing activities as a measure of liquidity, determined in
accordance with U.S. GAAP. Cott's method of calculating EBITDA may differ from
methods used by other companies and, accordingly, Cott's EBITDA may not be
comparable to similarly titled measures used by other companies.