PRMW.TO - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Cott Corporation's Fourth Quarter and Fiscal Year 2019 Earnings Conference Call. [Operator Instructions] This call will end no later than 11:00 a.m. Eastern Time. The call is being webcast live on Cott's website at www.cott.com and will be available for a playback there for 2 weeks.This conference call contains forward-looking statements, including statements concerning the company's future financial and operational performance. These statements should be considered in connection with cautionary statements and disclaimers contained in the safe harbor statements in this morning's earnings press release and the company's annual report on Form 10-K and quarterly reports on Form 10-Q and other filings with U.S. regulators. securities Canadian and of performance in section undertakes website GAAP materially available these no expressly the in law.A except actual or during measures fiscal and call www.cott.com.I'll the announcement forward-looking earnings XXXX this these the is the as with to reconciliation applicable the by company duty morning comparable required and non-GAAP call company's Relations. could company's with Jarrod VP financial released from the on of discussed measures now turn differ most statements, statements, Relations any Langhans, accordance The to Investor year at of company's fourth the earlier over quarter update Investor Cott's

Jarrod Langhans

call. our Financial and Tom Today, I'm and morning, Executive Billy Primo Good accompanied Waters. Chief our Chief Officer; our Harrington, Jay Officer; Wells, and CEO of Chairman Prim, thank you interim joining Executive by for

to the Q&A.With the before comments before the that, comment an of X-K expectations this to consolidated on financial conference filing www.cott.com, some fourth said, the to were over XXXX discussion part performance, start to a our Services a With as over that morning's back now few included Based Tom of designed this handing overall of before our throughout company part a let results discussion. on call Jay call, quarter and Tom turn you the our with moving that call was of assist and that segment, year a Route call full issued Primo results this call morning for me we have our As at thoughts will to Tom. online turning deck to our

Thomas J. Harrington

progress delivering for this Customer growth. we pure-play including good transition with Thank of the strong filtration I our interest and water we us our by our performance Thanks and new we morning. long-term top positions of business. at acquisitions.The made executing set highly strong joining Life the customer new long-term overlapping company our morning, We to of wanted call synergistic XXXX, revenue and of combination line our report in commodity the looking channels impacts XXXX that rollout X to developing progress in we momentum our strategy our solutions divested water improve these you, tuck-in believe consistently as better are the coffee that cooler experience, to pursue stage our initiatives, your X% Pureflo provider share growth Cott in drives a pleased with concentrate to against a company when IOT-enabled against margins growth mindset, we've while proud our our customer and pure-play for additions, entered for recent value committed removing the shareholders.And become initiatives FX, how to the and momentum I'm Jarrod, that remaining delivered for and the pricing everyone. enhanced solid and of

XX% a increased year. fourth $XX over increase million million, the from quarter, we to $XX During EBITDA prior

the For of some our elaborate flow, key adjusted million delivered of full commitment our cash of initiatives. $XXX briefly on plus.Let we $XXX free year, me million which the exceeded

to X.X to experience QX historically in of life pay to the retention resulting customer America, a improvement average in compared the investments churn year. Our our cooler we where a rate, XXX in customer beginning years basis XX.X%, increasing the of prior low are to and off, rates point North executed with base

expected reduce by enable our focus a us delivering that the Our hydration with further will our to solutions great experience customers on want, churn. along customers is

end communication. which allow We focusing and implemented per appropriate past real-time two-way revenue loyalty on customer on behavior to based that targeted communications to now by as their as We providing well communications our our purchasing both more customer triggered direct are tools, were sent current are have mobile investments invoice which to customers increasing us and year activities the new These for list future the implemented and as marketing. in choose products QX ability of customers, as rolled to out includes from. are the well.We our well a review at of app available working your orders our

our for growing provide addition roll coming including Over valuable our efforts investments customers' the to These opportunities.In as we implementing will ease experience, technology products capabilities. improve of we help continue needs, further improvements, into to updates portfolio satisfy retention to and the increase and our months, Mountain we insights relevant ordering added future are hydration customer out we've cross-selling on refine increased our our additional customers and to Valley for our our returnable X-gallon brand, customer, water case XX% simply, on water, the basis year. We line want what a our growth in focused forma Put of want XX% its penetration to and give pack to is our on rate pro remain pack they when water volume which they of small top goal XXXX. it. over grew increasing customers other and sparkling cross-selling case drove products base,

new Water Primo drive growth. to customer enhance hydration expanded our will to ability a deliver new our channels consumers, and group to continue to thirsty solutions frequency.We of acquisition reach and expanding organic develop of Our

new water XXXX.With drive this growth we generate to continue filtration, approach we of higher-margin the to of additions. water water will revenue this additional be multipronged to increases rollout also expand We're of enables through consumers continues top to online update, invest in reorder source higher our X-gallon Pureflo our returnable markets to which look Georgia We're growth, result began XXXX. acquisition an of category growth confident progress in HOD bottom and the filtration cooler. order in this digital making to a our water and respect the line ability program into e-commerce to and as which line an and other IOT-enabled and in As tested investing driving efforts, to retailer, low-cost customer platform, We're through and double-digit Florida. are throughout

solution this As reminder, efforts across water in a footprint. retaining support attracting our and patented filtration customers our will

lower number informed synergies. overlapping progress. our of we far to in XX-country business of in an operating dependable we that remain expanded and filtration water solutions. of to our tuck-in from of life as addition a services.As across range we products good complements accelerate revenue technology investors with business, increased we density European water and our of in fewer many density our improved these have overlapping And and density water that Our Pureflo our read, keep believe you an began better solution We sales we with water publicly tuck-ins. In X us and meaningfully technology predictable route filtration, the in provided order filtration we Hungary, tuck-ins costs, attractive our in route products.Finally, requires announcing XXXX, an than which, hydration Poland We HOD platform our Northeast strategy in North coolers tuck-ins. and offer. the filter already business with to and much deliver the American within previously our enable at and all United able the expand growth force footprint some States carbonation our player reducing to the included Netherlands and the is sustainable interactions, were us a proprietary extends a couple in our to added will through cost Europe allow in demand of stream allow meet future service will filtration We our a that our carbonation for to in top strengthened growth innovative executed which of leading another

is AWS, Resources. business of We and prior Director will in basis delivered operational the part continue North Resources last These of and to roles, and we and further commitments.In Water Water program larger execute actions, begin our and making density including this our variety core standard in route communicated.Switching implementation America, the XXXX. a a in initiative developed Based to 'XX part North of our hydrologist Alliance for Europe water Vice spring integral margin to leverage, a compared in environmental Stewardship, in an with of to Thornton, this in is sustainability revenue sources combination We're than our Services tuck-ins served in program to we and HOD in to of resulting we've program, environmental, year line the year our in our Route America ESG for meet most strengthen time was certification goals ESG as President, Services progress XX EBITDA recently Travis Water achieving governance. DS point had years. social previously at Travis announced Leading growth, improvement XXXX. over our segment,

across water business a the water units certification, addition to Travis will will in ensure XXXX.Our sustainable be for and decades spring today not consistent sources managed operations. sources our yield to but his quality across by the with efforts that confident spring responsible resources We're for come. our AWS achieving meet do to only Cott's needs, leadership are for company's for to certification AWS managing continual In sustainably

in focused status Europe. to add XXXX In addition, by X-year attaining North in carbon-neutral our America status carbon-neutral we're to on

As diesel in our fleet propane-fueled part diesel of and replace on trucks much approximately replacement source. to this program, XX% with consumption these friendly we're a by more route moving for XXXX, and assets fuel will vehicles energy XXX reduce environmentally is which will XXX propane trucks from

with our a legacy last soda XXXX, million $XX sale In concentrate deployment. of capital February and component juice business. to Turning the in we our business of divested

through continued tuck-in and our of $XX shareholders to buybacks the We acquisition our and end our million $XX annual of goal dividends. $XX we acquisitions of returned above million strategy high share million, to combination a with

XXXX, the and outstanding ongoing and benefit of We're share our execute of approved in are CEO. our of my as and I'm excited XXXX.As our returns, well to what of XX-month program positioned a accomplished continuing to our proud shares, growth, look part back our of to in through company organically As about this program will tuck-in both I first platform. million on up common $XX new Board our associates commitment from during year shareholder against Directors repurchase we across of December, acquisitions future

of divestiture to solution organic business potential, profile in benefit that focus.Moving generate growth aggressively growth only entered of not We our while to of the Primo focused line transitioning full to our also of EBITDA Primo remain preparing XXXX Company. provide are We've Coffee our million water the pure-play expect Westrock a will new business. terms the provider. pure-play well water to to realize strong We're an for as into a drive becoming the flow integration but margin organic X the pure-play identified of overall margin our solutions S&D $XX as previously update the smoothly successfully standing execute business process increased improve free financial the water of and a pure-play will We as and and welcome our deliver acquisition on businesses in to the Primo to and pure-play a S&D completing addition provider. excited potential momentum see Water of We begun the top water cost and will integration transition ability water growth from combined Water expansion Corporation the with company, the through team we transformation provider. confident the capture as our on with the we solutions Primo cash synergies our

hydration opportunity in Of expect the deliver positioning we continued we and growth in top focused margin while to to the We're provide ensuring also base growth, deliver we our ensure shareholder this for base the execution course, to business. growth long-term company the we excited sustainable value. growing on customer line and are about solutions truly business

Exchange Toronto transaction, we February.I'll and the Water ownership. successful stand to now first our our ticker of specifics planned and update turn the change things Stock new will today, we Primo Exchange March, as who We're our during our the would Jay are more a review very working the expect an the on close York sale will to performance. end New strong XXXX to Stock the Primo to As call change S&D at positioned both to PRMW.Moving business a closing which week name to will over time Corporation currently of the at This quarter Tea. well for Coffee of Jay? towards on under they had and and

Jay Wells

Extract We and in benefits. and and and million and Cott year. to days revenue continued from within Starting good in and the initiatives consolidated quarter, the adjusted Based quarter The XXXX.Turning segment. to back Route increased $XXX up in our saw to cash growth of revenue Thank XX% we Solutions of year good segment, continuing income and the we in the saw year of of top free confidence gives X%, strong cost everyone. driven good coffee. the Beverages, growth morning, $XX million, throughout grew outstanding.Moving see income average delivering we the in to operating XXXX, and $XX over price us $XXX the improve pricing quarter performance management million capital segments included Based working you, Coffee, impact EBITDA foreign benefit good excluding as in volume grew which Services water our performance of line inventory, working cash. X% volume, quarter operations X%, line Tom, customer, in the and and outstanding XX% Services our resulted across and the days segment The by fourth the working growth to HOD with performance of LLC $XX good top sale This to improved capital grew pricing million, including acquisitions. primarily was driven we management to full performance exchange, mix million, was sales another within our by with payables Route $XX or by flow within consolidated extract Tea of from saw Adjusted the by increased million. capital Operating increased customers, half momentum inclusive adjusted our EBITDA over change implemented

Based additions, driven partially within pricing, driven growth EBITDA route Our the consolidated density and Route were of approximately the by results volume, of were with offset where was Services. We improvements benefit impact customer foreign Route segment exchange. margin by new Based increased primarily by leverage. These to the operational end acquisitions, basis negative our of year pleased points expansion were Services XX

Route our for of communicated operating of it As segment. cash performance expectations free we me exceeded adjusted million cash, relates previously year.Let our $XXX to the Services with cover the flow now Based

delivery Looking in $XXX Services our at Route a in as as improved growth and Based to mentioned gross primarily X%, water which revenue by which by in organic profit expansion. XXX basis combination volume the well operational home resulted of increased growth of margin customer was I grew growth business, pricing.Gross the fourth revenue driven which X% the drivers quarter, points revenue increased driven just quarter, million by primarily and driven office X% of leverage, X%, excess of and

acquisition Additionally, to sweetened percentage reduce $XX migrate me as a growth few program.Let we segment continued look on as were well to continuing for from believe XXXX our benefit we and X comments of tuck-in and increase able points, and XXXX, XXX Services program, additional costs as Customer EBITDA by opportunities, Based XX%.As improvement through quarter an fourth consumption income overhead million provide our operating to growth Route positioned basis in SG&A to saw results. hydration our continue a we from of cross-selling consumers towards revenue we within are away sugary Life Primo's of through and an as growth decrease in healthy pricing well beverages now resulting

those of familiar Primo driven key categories For the channels. Primo, less by business with you is or X

and the help online Primo points. is we of and retailers stylish blade a water increase major razor razor water the X price penetration, higher-margin businesses. First, model. recurring These of lineup at razor sells full X consider which the dispensers then dispenser which through dispenser comprised offering blade The the and of various sales innovative businesses. purchases drive business, business household

channels.Turning bottle business X-gallon present prefilled is consumers water. and and or X- locations where refill such at retailers Home machines Canada the XX,XXX as and process second well the water bottle business. filtration category Canada U.S. exchange Lowe's in Home empty throughout own to to leading Depot, The driven refill consumers Albertsons.The business the across with net their $XX at exchange purified $X.XX the exchange a by variety the XX,XXX gallon. The exchange primarily a of approximately for of as empty refill channels The were across QX a can seen as sales Kroger, machines indoor bottle located Safeway the performance. Combined the refill and a multistep with incorporate Improvement U.S. as million, dispenser to during locations for and and results all retail First, as multi-gallon for is little XX% channels. in growth. pleased their the are We outdoor quarter, increased formats over

helped channel sold fourth related orders Consumer in growth and which that in a XX% coupons more XXXX, exchange a to dispenser. to record units sales linked the ICE million certain XX.X% of unit the in and sales improvements XXX,XXX Primo's increase business, coupons exchange increase within mix business. and Primo unit to promotional assets to dispenser was gross and associated exchange the spend Primo's The exchange from the in from XXXX. to quarter.In to quarter consumer-focused demand same-store the due to in XXst a compared sales due increased including spend associated measured continues efforts increased overall The than is in excluding in-store consumers, in was of with consumer-focused as activities. display ICE exchange million. XX% with shift aided the in of business, machine sales instantly efforts, sales consecutive And in in an when dispenser sales a promotional was redeemable purchase Primo's efforts, sales the instantly locations in the an quarter margin $XX including to retailer dispenser in sell-through QX, refill were was consumer and the make purchase units operations, This promotional refill and signage.Lastly, new XX%. business, percentage earlier XX% locations. June X% sales record demand, uptime, by revenue the of Dispenser of over end increased increased promotional localized sold $XX dispenser increase Excluding helped redeemable promotional of increased to of which with increased achieve number growth X%. drive and a results XX%

gross XXX promotional and activities refill coming and Primo's leveraged customer margin from X% in the Although generate refill which against by fixed segment. a XXXX.As The benefit net Overall, strong books, dispensers X-gallon-equivalent revenue With to a will with to million. over the company a of and costs the out to the margins, on Gross months. of put a we quarter and look summary segment as execution certain exchange in the year the driven in increase units, improved growth XXXX. significant expectations the pressure growth within to resulted Primo X% sales as activities our percentage for increasing basis financial nature adjusted points, forward EBITDA are guidance. continuing growth from these in look full the performance XXXX looking our we we quick solid $XX fourth pleased

adjusted To grow part year the million we have benefit $XX XXXX, to is XXXX, expect Those and EBITDA growth Route the Primo's of Primo of exact year upon first of provide have top will million, and operations. well in goals. as we close for on move deliver with expectations have to Tea working divest initiatives segment, segment would also of of our $XX line million a into acquisitions, Revenue we and only and operation Extract include well will approximately we of exclude exclude Solutions benefit goals X%. number $XXX discontinued you Coffee, X% it between in we Primo. Based included amount dependent be our is X% full expectations to inclusive expectations $XXX within XXXX, which in million XXXX These setting quarter growth a a where tuck-ins. These the in by as $XX up turn, and as some EBITDA expected transaction. momentum will Adjusted million. us As Services CapEx we of robust when pipeline built the our to effectively and tuck-in to be be

addition, million of are $X.X expecting synergies In to benefit from XXXX. we in

scheduled will which The publicly As will the Day have broadcast a combined presentation a March reminder, we for presentation XX, be Investor entities. website. our for through modeling our incorporate

Coffee release, EBITDA, $XXX will goals capital XXXX XX, models, are of it million for cash XXXX. free excludes any flows of outlines an and million March our include interest around $XX adjusted $XXX $XXX the million. the around which $XXX we to expected our the free Again, adjusted our $XX Investor not press As business.For contributed of taxes $XX of in of Day on and provided including back cash which free cash flow expenditures XXXX, we projections We of as Tea expect acquisition, cash tuck-ins, our Primo well those and of these to working million of as million. million exhibit benefit your during million adjusted drivers in approximately do you it relates S&D who S&D flow.Overall, we of adjusted free on million adjusted our cash of expect flow $XXX to cover

You to within and to staple to press through return looking revenues, will for at we the funds deployment quarterly release.And shareholders EBITDA our our exhibits the able capital for obtain in XXXX, dividend. were S&D margins continue

dividend, continue addition will we share our quarterly our In program. to buyback

share program approved As we to to of shares. Directors of $XX intend million outstanding Tom noted, program And in new the repurchase up XXXX. Board of our against common our XX-month this execute

tuck-in refinance of and to a our in to we with the July.I'm our the now in going program acquisition after acquisitions, We euro Tom. call continue debt call will $XX turn back million date also $XX to million second to target plan

Thomas J. Harrington

lie that especially for we ahead water generate provider, stakeholders. a transition and in to pure-play our solutions that will our the creation turn, Thanks, the Jay. of excited very about We're opportunities all business, value

will to As through we Services the of will we deliver at growth top we line business Route Based strengthen our revenue X%. expect look X% that a number business, actions of

both across in delivery water net water and within delivery water footprint, home the we're and growth and our office First, XX-country as water player where customer business home well footprint. our top filtration leading across a as we will X increase office filtration

to tailwinds and from leading away continue sweetened form shifting sugary the consumer as towards continues in Second, experience continued we move consumption the healthy consumer to hydration secular to beverages, of preferences growth.

focus offerings turn cross-selling Life areas introduction customer to Customer spring are in Valley philosophy. supported service density, the and mix the improved opportunities well route product X footprint by such in as that the consumers. improved Third, customer and These customer of product technology, We'll life the will innovation, with in experience a focus by continue communications, continue margin and Pureflo on up-sell EBITDA such our as across sustainability, in resonates we Filtration the areas our drive XX execute our expansion customer Fourth, to continued basis our and to fifth, as footprint; our annual improved program. ongoing quality pricing actions XX improvements helping rollout and driven achieving we'll Mountain mobile of and app. sparkling particularly water as our tuck-in points and our on of historical water our sourcing carbon and also of

X in player filtration in water, leader point-of-use returnable American or water the a and a be model, we of top Primo exchange, pure-play first on Waters, as sale we transitioning water of the self-service retail new well the complete water company. will this Coffee office closing Under we refill, delivery to As of quarter sales XXXX, a dispenser market pure-play as S&D thereby, the North category. and acquisition home anticipate

the Primo office water-focused addition, company North and reached partnership a remain could to Europe the well will we and consumers as water upon and the to will to water DS grow on the as than channels successful delivery acquisitions synergistic tuck-in more categories through solutions range innovations, how to we market of higher-growth own. it. home reach our in X and want category. product top transition a In highly continued American as The the either a in where builds full or opportunity their offer service water European positioned well in be Cott where and they between partnerships creates combined filtration player excel Services company and as in more Primo marketing leader business and consumers This higher-margin to when, able have hydration

expect footprint, We and we will And looking our cost we to Primo's see our accretion services reduced other while earnings, million our $XX and drive plan of financial our to would products the post European the time, we Xx deliver transition to and credit at the also at targeting profile. synergized across EBITDA expand transaction improving expect leverage synergies. improvements, same approximately

shareholders. all addition, moving largely everything we last to to have as Thank efforts our the our X-gallon the programs well vertically in whom are our going route as wanted business to based we bottles XXx.Before did these you remain thank I'd support of insulated all. fluctuations of everything as X-plus we running our from energy all be and commodity Jarrod associates in we up In will plan FP&A U.S., to over in and and integrated thank able use to XXXX across to take for accomplish our implemented accomplish Q&A, footprint not surcharges we'd water like our forward. entire IR years, corporate I X- without to a moment also

operation. our of will on growth Chief part both new Financial wish promoted IR ongoing to We few transition who company, a months As European planning announce and to well succession our of is Jarrod being forward throughout look Officer we're Jarrod that our pleased to as leadership, adding be next following and focus will new role. the Relations his in Jarrod Investor we over continued communications. will his

this targeting the our messaging, and the end Alpha on of function with addition, contact on information strengthen XXXX our IR investor press assist but new they to only we as at included Alpha IR and our IR well analyst will their as In morning with engaged release have efforts. website. IR will and assist core in to efforts outreach our relation functions, not us issued

turn I'd company's of Finally, the call to wish I'll they enter S&D their well Q&A. next Jarrod efforts this team now the year and the as the story thank for us to to move chapter them back to like history.

Jarrod Langhans

in you, Operator, the role. to forward gentlemen. I to Instructions] continuing my [Operator your look questions. the support business line Thank open for up please for time. new you Thank

Operator

[Operator comes question from of Instructions] Your first Peter JPMorgan. Grom

Peter K. Grom

just I the to initial wanted ask XXXX guidance. on

kind what from just the or and to margin still in I that standpoint kind quickly your EBITDA guide? which XXXX? year, look And in would in mean, the as strong performance, it's end any takes we push low out just end? now, progression QX, the then of margin of the embedded the early really puts you cushion high how think was about So we are the have on Given right to should

Thomas J. Harrington

Yes. Look, be to Thanks, against we've last hard performance X over I X quarters. itself worked consistent think very think, our on I the in delivering or very manifesting the commitments, Peter.

So unit. And would our go-forward confidence time guidance is of that parts our is be And track thing, the want numbers in Jay, would the over of take multiple that same our biggest business do be in the... single that execution. we'll have risk now you execution improving deliver. clearly, our is to we one record

Jay Wells

million. growth historic that's our you Yes. the guidance million number EBITDA more On look $X $XX S&D, that -- mean, EBITDA excluding of $XX side, if million, million. I for organic tuck-ins we've to $XXX given at XXXX, Peter,

So if at $XX $XX you would be million. put that Middle that million. $XX you're to together, guidance million of

of to million, the the $XXX add of we've guidance in right range get the given. the middle $XX You you million, million $XXX to

So expansion behind math guided behind $XXX On $XXX that million we bps Route the and margin, our that a Based million. of Services, the continue guidance. year, margin we have to EBITDA XX XX to was the

Operator

Lessard Derek TD from comes question of next Securities. Your

Derek J. Lessard

congrats, drivers like your pretty on the the promotion. guess just and Jarrod, on Yes. following I color add really quarter. if up operating It on can to wondering good some just some and was changes, there. drilling Congrats guys, transformational leverage. on some the down of last was a strong question. you Maybe maybe this just year, I

Thomas J. Harrington

growth Yes. the organic it's of and benefit mean, the on I the clearly, the business. acquisitions roll-forward tuck-in

more hiccups that. think no surprises, so so base we consistent moved no operation, I it's the right, across had we've execution

basis points go-forward -- XX ability XXXX. deliver ability in in number So we're XX the to XX in our XX consistently confident pretty to on our that to in

Derek J. Lessard

Jay, maybe you. for one Okay. And

the million. I include wanted $X.X no? think or million -- synergies EBITDA to Primo in of adjusted the does you to $XX just point I did that

Jay Wells

So it's not.

full the based when X.X% back-end it's rata basis but to fully we loaded. And deal, going be pro that's close the be year will is on So XX.

we that be So when will see that benefit.

are of on so top any does achieve. is costs they to does exclude So it and adjusted, be to -- exclude clear, -- it it

Operator

comes next Securities. Moore Your of question Daniel CJS from

Daniel Joseph Moore

talk a bit Well have Billy about touch -- refill -- deserved. Jarrod, congrats, maybe -- we well. And to Wanted on probably would little appreciated. just you seems on of as have mentioned the business XXXX turned any the have Primo greatly color here, But Obviously, to promotion for that direction the around be some and sort corner. helped. maybe activity that's more

Billy D. Prim

you. Yes. Thank

got downtime a our the business. seen turn that a good the It seen have readers future. very improvement in the we routing well, about get to card feel and for new over X we nice our We we schedule. refill and than is It consistent X once in last in we liked But place, metrics months. took together and operating longer credit would put the little us place or have have

Daniel Joseph Moore

Going on to way. guidance year, out, but on and for and The flow pulled in good that for jump hard implied Jay this confidence capital. around is mean one I next the guide to the for you then that just upside downside in a screen year, neutral pretty sneak next year cash potential. working

Jay Wells

-- We said it I got headwinds. been right. FX think you've experiencing And some before, I and did we've

our the had a issues with So getting working that care in order good we taken did we've capital of job to very guide, of. meet

year. what closed sustainable we it's feel happy I did. the very that we And how So

see So next any I think year. clawback don't you'll

capital as So on working confident very look we flat to XXXX.

Operator

Your question from comes Canaccord next Genuity. of Derek Dley

Derek Dley

Just you -- understand following help can working why us do reason you up get that a QX on Is why tend question. just to there a quite last or benefit? capital decent-sized in

Jay Wells

the for at think QX with AR. business X summer looking look the we One, hydration. get the which yes, of busier you our is end months, seasonality of as We seasons out I you're Derek, at significant things.

the fruition hard as some And focused at that the So calling you on. implemented saw but think that putting the working when year, work, our of cadence in over come within back managing the capital quarter. that's back been improvements of do the I we and project has better the been the half this not part I'd see to payable over benefits I've really specifically beginning capital of being had management controls just managing of working with talked at results been being fourth saw same that's AR I year. issues Europe we the and of inventory, a the year saw about, it. overall Two, managing

Derek Dley

can Okay. just acquisitions? multiples tuck-in medium-sized front, for terms in you what the M&A seeing the then and of in sort That's terms remind you're of just small the us helpful. And of

Thomas J. Harrington

seen Yes. little see higher. and before little of course good is aggressively much as opportunities good list is retain bit in we've we normal we pretty Atlantic. the Tom. lower have a the think multiples historically. that on list the of are experienced Europe math we generally We've of you've Derek, move a fairly past. us opportunities both this execute sides that the But articulated same bit And recent forward. most a a We U.S. I

Derek Dley

just Okay. one then me. last for And

for number, the Primo. targets Just million. Obviously, big $XX it's of in that synergy here terms a

the know or synergy call, on to previous you expect Just through the where remind buckets us again, targets? those it get the just you went -- I get most leverage you but on where

Thomas J. Harrington

There's really X buckets.

costs So million order to office, and me, and of million $XX largely is customer of it's redundant in but call Then of is center there's front have which -- think it service that, I the $XX opportunities corporate the procurement. in the which -- back don't number. and

like the what buy and facilities. that facilities, both similar it's lids boxes And and I'll and of think and bottles all then So business. sides components the logistics, on of we call logistics but

facilities typically terms all larger which DS largely developing a plan. close side, teams The to are have facility. a of engaged in very the redundant Primo is what or the already on So

on on remain first So million, in to confident $X.X we calendar focused the the $XX we us $XX million. which the expect And XXXX. obviously, gets million we're

Jay Wells

make Primo for every the We put We've as first place. $XX We've Phase with teams workstream. in has than million in how a place, to the been $XX over robust $X.X delivering will identified early, sure this tranche, end already plans in $XX of year. basically plans But And XXXX. million put in flop deliver more at the Tom the into to place place million by the said X already of us good that's we end deliver year. up of have first we got we also very million good next Derek. charters come have whole working

Operator

CIBC. Your Zamparo next question comes from John of

John Zamparo

thoughts about is the ask filtration I a just your Pureflo being And Or how has particular, business been in it to generally, of you is a this add existing when typically segment. And launch from wanted side the switching customer? HOD of received. someone and customer the an filtration new add? it on customer,

Thomas J. Harrington

We in soft the started Sure. QX. rollout Pureflo of

We technology we're we the of results. we the converting new, are and also better terms Most would our although Consumer than in so been have the customers pleased with quite the of solution, hoped frankly, are feedbacks, from because are existing filtration early pleased. As the, help in them technology it from the any our will let's bring to to the a retention, perspective. filtration people new don't business. changes we technology see century with think HOD we call, converting into XXst base We have

highest rate frankly. HOD my it's ever memory water is lowest business the quit which the we've in retention, bottle stable says been, have more our experienced We than and

technology. confident across benefit good has quite using growth And do who of Primo, water the technology is filtration. plan we're that participate in about that. innovation the we'll as of as well to It's So footprint the real entire our our and from we water filtration

the place we're in when stronger with believe filtration we we'll be a integration than today. finished in So

John Zamparo

helpful. And coming pricing guests guide, adds the or the split volume continuing operations when then -- to it versus you expectations our X% contributions? the growth versus revenue your comes of talk X% the Can tuck-in to Okay, about expectation. back to of that's organic or split on

Thomas J. Harrington

it the X% be is it wrong, will but think a we've I to think would the organic, really numbers from. of shared, will will think come tuck-in will Yes, that. good be historical pretty it think which X% where of sense be that be And way

expect tuck-ins to we So grow X%. and base then around the around we'll business execute X%,

Jay Wells

And Yes. growth and saw in we volume continue. X talked And different of those the we customer customer things expect they about, the pricing by to and that quarter, on. say, but levers that And good vary as quarter. is We pull X hand-in-hand. we are levers, we growth kind the

Thomas J. Harrington

in are And of to plan -- that included levers we'll all So price, XXXX. continue those it's our X for and part X% right?

Jay Wells

we're to might want XXXX nobody's the about asked did did mention why QX that like. And on on look it. I comments a And thing and to was One few call on add want what that. I

look reason you the investing times when expect top shorter a at one our So is the to $XXX the to see million S&D the why of you're and excluding in had season. quarter. And growth and line down we're slowest year X% not It's summer and in of EBITDA Primo, QX. $XX.X Again seeing we it it's to in P&L., more the leverage million of season. of approximately X% excluding if X% XXXX S&D, revenue we'd X% EBITDA growth and

to about a wanted make we off just before call. bit QX I So the we little sure got talked

Operator

Your final comes Lessard question Securities. from Derek TD of

Derek J. Lessard

one I Primo? I just to, just wanted was for confirm what me. more guess, Yes, for EBITDA XXXX

Jay Wells

the Got It was was got to -- I the up pull million. up... to It pull XX $XX slide.

Billy D. Prim

$XX.X million.

Jay Wells

Thank million. Billy. $XX.X you,

Operator

was our That will today. return to question our final I call presenters. the now

Thomas J. Harrington

all a day. for you Have good call. QX XXXX Thank joining this

Operator

participating. call. you gentlemen, concludes Ladies for conference Thank today's and this

now You disconnect. may

Primo Water (PRMW) 20 Feb 202019 Q4 Earnings call transcript