Cott Corp. (COT) Misses Q4 EPS by 1c, Revenues Beat; Offers FY19 Revenue Outlook Below Consensus

Cott Corp. (NYSE: COT) reported Q4 EPS of $0.03, $0.01 worse than the analyst estimate of $0.04. Revenue for the quarter came in at $599.2 million versus the consensus estimate of $597.74 million.

"With the sale of our traditional business at the beginning of 2018, we became a growth-oriented company with predominantly recurring revenues and multiple scalable platforms. This allowed us to deliver strong financial results in 2018: we grew revenue by 5% and delivered on our adjusted free cash flow commitment, which came in at $125 million when excluding approximately $25 million of working capital benefits. This strong performance enabled us to execute our capital deployment strategy that increases the pace and scale of tuck-in acquisitions, returns funds to shareholders, and improves our balance sheet," commented Tom Harrington, Cott's Chief Executive Officer.

"Our fourth quarter operations delivered on our revenue goals, met our external EBITDA expectations, albeit at the lower end due to some additional incentive accruals that were recorded within our Route Based Services segment, and exceeded our free cash flow targets," commented Mr. Harrington. "With these results and good momentum going into 2019, we believe we are well positioned to deliver on our free cash flow target for 2019 as well as our goal of 4% to 5% topline growth," continued Mr. Harrington.

GUIDANCE:

Cott Corp. sees FY2019 revenue of $2.4 billion, versus the consensus of $2.47 billion.

Cott is targeting full year 2019 revenue from continuing operations in excess of $2.4 billion and adjusted free cash flow of over $150 million (when excluding acquisition, integration and other one-time cash costs). The targets incorporate the sale of the soft drink concentrate production business and RCI international division which occurred on February 8, 2019 and represented over $80 million in annual revenue.

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

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