Cott Corp. (COT) Tops Q1 EPS by 5c, Miss on Revenues

Cott Corp. (NYSE: COT) reported Q1 EPS of $0.03, $0.05 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $560.8 million versus the consensus estimate of $566.12 million.

FIRST QUARTER 2018 HIGHLIGHTS – CONTINUING OPERATIONS

• Revenue increased 4% (3% excluding the impact of foreign exchange and adjusted for comparable trading days) to $561 million compared to $537 million.
• Reported net income and net income per diluted share were $5 million and $0.03, respectively. Adjusted EBITDA increased 8% to $65 million.
• Cott completed the sale of its traditional beverage manufacturing business to Refresco Group N.V. ("Refresco") on January 30, 2018 for $1.25 billion, of which approximately $1.1 billion of proceeds were utilized to repay outstanding debt (inclusive of principal, premium and interest payments). As of March 31, 2018, Cott's leverage was 3.6 times (net debt to LTM adjusted EBITDA).
• On March 23, 2018, Cott completed the acquisition of Crystal Rock Holdings, Inc., a direct-to-consumer home and office water, coffee, and filtration services business. On April 9, 2018, Cott sold its PolyCycle Solutions assets to Consolidated Container Company. The net impact of these two transactions on 2018 revenues is expected to be an increase of approximately $30 million.
• Cott increased targeted full year 2018 revenues to over $2.35 billion to reflect the Crystal Rock and PolyCycle transactions.
• Cott increased targeted full year 2018 cash flow provided by operations to reflect the Crystal Rock and PolyCycle transactions to approximately $235 million with capital expenditures in the range of $115 to $120 million, resulting in adjusted free cash flow of $115 to $120 million (when excluding acquisition, integration, and other working capital adjustments).
• On May 1, 2018, Cott's Board of Directors approved a $50 million share repurchase plan.

For earnings history and earnings-related data on Cott Corp. (COT) click here.

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