Cott Corp. (COT) Misses Q3 EPS by 7c, Revenues Beat; Raises FY18 Revenue Guidance

Cott Corp. (NYSE: COT) reported Q3 EPS of $0.06, $0.07 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $609.3 million versus the consensus estimate of $602.93 million.

• Increased revenue 5% (6% excluding the impact of foreign exchange and adjusting for the change in average cost of coffee) to $609 million compared to $581 million.
• Reported net income and net income per diluted share of $9 million and $0.06, respectively, compared to reported net income and net income per diluted share of $2 million and $0.01, respectively. Adjusted EBITDA increased 11% to $93 million.
• Returned approximately $32 million to shareowners through $8 million in quarterly dividends and $24 million of share repurchases.
• Updated targeted full year 2018 consolidated revenue to approximately $2.37 billion from over $2.35 billion and updated full year 2018 cash flow provided by operations to approximately $245 million with capital expenditures of approximately $125 million, resulting in adjusted free cash flow at the upper end of our $115 to $120 million expectation (when excluding acquisition, integration, and other adjustments).
• Acquired Mountain Valley, a fast-growing premium American brand of spring and sparkling water that is one of the most recognized home and office ("HOD") brands in the United States. Mountain Valley has been bottling in glass continuously since 1871, with one production facility in Hot Springs, Arkansas, and four protected and owned springs in the Ouachita Mountains with excess capacity to supply long-term demand. Channels of business include HOD, the natural food channel, on-premise, E-commerce and strategic contract packing.

"We experienced good top and bottom line momentum this quarter driven by increased customers, consumption, pricing, and tuck-in acquisitions within our Route Based Services business," commented Jerry Fowden, Cott's Chief Executive Officer. "With our Route Based Services business performing well including the successful implementation of our pricing actions alongside the addition of a fast-growing premium spring, sparkling and flavored water brand with the acquisition of Mountain Valley, we are well positioned to deliver on our 2018 and 2019 free cash flow goals," continued Mr. Fowden.

GUIDANCE:

Cott Corp. sees FY2018 revenue of $2.37 billion, versus the consensus of $2.37 billion.

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

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