- Delivers Q3 Revenue guidance and exceeds high-end of Adjusted EBITDA guidance
- Revenue of
$622 million , a 6% increase - Net income of
$33 million , a$32 million increase - Adjusted EBITDA of
$141 million , a$24 million or 21% increase - Adjusted EBITDA margins of a record 22.7%, a 270 bps increase
- Reaffirms full-year 2023 Revenue and Adjusted EBITDA outlook
- Increases full-year Adjusted Free Cash Flow guidance by
$10 million to approximately$160 million - Declares quarterly dividend of
$0.08 per common share, a 14% increase over last year - Announces sale of significant portion of International businesses for up to
$575 million in all cash transaction
"Our third quarter results reflect the underlying momentum of improving our route density, network efficiencies and optimization, and realizing the benefits of our investments and pricing. We once again delivered strong revenue and earnings growth, while achieving record Adjusted EBITDA margins. I am proud of the efforts of our team across the enterprise and their focus on improving the customer experience and overall execution," said
"This morning we announced an agreement to sell a significant portion of our International businesses. This transaction offers an attractive premium valuation and simplifies and focuses
"Our third quarter performance gives us confidence to reaffirm our 2023 outlook to between
THIRD QUARTER HIGHLIGHTS
- Revenue increased 6% to
$622 million compared to$585 million driven by revenue growth of 7% in Water Direct / Water Exchange and 19% in Water Refill / Water Filtration. - Gross margin increased 250 bps to 62.1% compared to 59.6%.
- Reported net income and net income per diluted share were
$33 million and$0.21 , respectively, compared to reported net income and net income per diluted share of$1 million and$0.01 , respectively. Adjusted net income and adjusted net income per diluted share were$52 million and$0.33 , respectively, compared to$36 million and$0.22 , respectively. - Adjusted EBITDA increased 21% to
$141 million and Adjusted EBITDA margin increased 270 bps to a record 22.7%. - The Company reaffirms its full-year 2023 revenue target to between
$2.32 billion and$2.36 billion and its full-year 2023 Adjusted EBITDA to between$460 million and$480 million . - Full-year Adjusted Free Cash Flow is forecasted to be approximately
$160 million , an increase of$10 million versus previous guidance. - Subject to closing the transformational sale of a significant portion of its international businesses,
Primo Water anticipates it will release its 2024 guidance in conjunction with its 2023 year-end earnings inFebruary 2024 .
For the Three Months Ended | |||||
(in millions of | Y/Y Change | ||||
Revenue, net | $ 622.0 | $ 584.6 | 6 % | ||
Net income | $ 33.4 | $ 1.3 | $ 32.1 | ||
Net income per diluted share | $ 0.21 | $ 0.01 | $ 0.20 | ||
Adjusted net income | $ 52.2 | $ 35.7 | $ 16.5 | ||
Adjusted net income per diluted share | $ 0.33 | $ 0.22 | $ 0.11 | ||
Adjusted EBITDA | $ 140.9 | $ 116.9 | 21 % | ||
Adjusted EBITDA margin % | 22.7 % | 20.0 % | 270 bps |
SALE OF INTERNATIONAL BUSINESSES
As announced earlier today,
Shareowners can read the full details of the Transaction announcement on
OUTLOOK
Q4 2023 Range | FY 2023 Range | |||
($ in millions) | Low | High | Low | High |
Revenue | ||||
Adjusted EBITDA | ||||
Cash Taxes | ~ | |||
Interest | ||||
Cap-Ex | ~ | |||
Adj. Free Cash Flow | ~ |
THIRD QUARTER 2023 RESULTS CONFERENCE CALL
International: (416) 764-8659
Conference ID: 93280528
This is a live, listen-only dial-in telephone line.
A slide presentation and live audio webcast will be available through
THIRD QUARTER GLOBAL PERFORMANCE
- Revenue increased 6% to
$622 million compared to$585 million . The increase was driven by revenue growth of 7% in Water Direct / Water Exchange and 19% in Water Refill / Water Filtration, due primarily to pricing initiatives and increased demand for products and services from residential and business customers. Revenue growth by channel is tabulated below:
For the Three Months Ended | |||||||
(in millions of | Change | % Change | |||||
Revenue, net | |||||||
Water Direct/Water Exchange | $ 431.2 | $ 402.2 | $ 29.0 | 7 % | |||
Water Refill/Water Filtration | 73.2 | 61.6 | $ 11.6 | 19 % | |||
Other Water | 34.1 | 32.4 | $ 1.7 | 5 % | |||
Water Dispensers | 16.7 | 23.7 | $ (7.0) | (30) % | |||
Other | 66.8 | 64.7 | $ 2.1 | 3 % | |||
Revenue, net as reported | $ 622.0 | $ 584.6 | $ 37.4 | 6 % | |||
Foreign exchange impact | (5.1) | — | $ (5.1) | n/a | |||
Revenue excluding foreign exchange impact | $ 616.9 | $ 584.6 | $ 32.3 | 6 % |
- Gross profit increased 11% to
$387 million compared to$348 million . Gross margin increased 250 bps to 62.1% compared to 59.6%, driven by pricing initiatives, increased demand and operating efficiencies. - SG&A expenses increased 6% to
$315 million compared to$297 million . The increase was driven by higher selling and operating costs that supported volume and revenue growth related to delivery commissions. - Reported net income and net income per diluted share were
$33 million and$0.21 , respectively, compared to reported net income and net income per diluted share of$1 million and$0.01 , respectively. Adjusted net income and adjusted net income per diluted share were$52 million and$0.33 , respectively, compared to$36 million and$0.22 in the prior year. - Adjusted EBITDA increased 21% to
$141 million compared to$117 million , driven primarily by pricing initiatives, customer demand and effective expense management. Adjusted EBITDA margin was a record 22.7% for the quarter, compared to 20.0%. - Net cash provided by operating activities of
$148 million , less$50 million of capital expenditures and additions to intangible assets, resulted in$99 million of free cash flow, or$102 million of adjusted free cash flow (adjusting for the items set forth on Exhibit 7), compared to adjusted free cash flow of$21 million in the prior year.
THIRD QUARTER REPORTING SEGMENT PERFORMANCE
- Revenue increased 5% to
$470 million driven by revenue growth of 7% in Water Direct / Water Exchange, and 18% in Water Refill / Water Filtration driven by pricing initiatives and increased demand for products and services from residential and business customers.
For the Three Months Ended | |||||||
(in millions of | Change | % Change | |||||
Revenue, net | |||||||
Water Direct/Water Exchange | $ 356.2 | $ 334.1 | $ 22.1 | 7 % | |||
Water Refill/Water Filtration | 62.0 | 52.6 | $ 9.4 | 18 % | |||
Other Water | 13.6 | 9.6 | $ 4.0 | 42 % | |||
Water Dispensers | 16.5 | 23.7 | $ (7.2) | (30) % | |||
Other | 21.5 | 26.8 | $ (5.3) | (20) % | |||
Revenue, net as reported | $ 469.8 | $ 446.8 | $ 23.0 | 5 % | |||
Foreign exchange impact | 0.3 | — | $ 0.3 | n/a | |||
Revenue excluding foreign exchange impact | $ 470.1 | $ 446.8 | $ 23.3 | 5 % |
- Revenue increased 13% to
$81 million (increased 4% excluding the impact of foreign exchange) driven by pricing initiatives and favorable impact of foreign exchange rates.
For the Three Months Ended | |||||||
(in millions of | Change | % Change | |||||
Revenue, net | |||||||
Water Direct/Water Exchange | $ 63.2 | $ 55.6 | $ 7.6 | 14 % | |||
Water Refill/Water Filtration | 10.2 | 8.2 | $ 2.0 | 24 % | |||
Other Water | 0.3 | 0.5 | $ (0.2) | (40) % | |||
Water Dispensers | 0.2 | — | $ 0.2 | 100 % | |||
Other | 6.9 | 7.1 | $ (0.2) | (3) % | |||
Revenue, net as reported | $ 80.8 | $ 71.4 | $ 9.4 | 13 % | |||
Foreign exchange impact | (6.7) | — | $ (6.7) | n/a | |||
Revenue excluding foreign exchange impact | $ 74.1 | $ 71.4 | $ 2.7 | 4 % |
QUARTERLY DIVIDEND
SHARE REPURCHASE PROGRAM
The actual timing, manner, number, and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of
ABOUT
Non-GAAP Measures
To supplement its reporting of financial measures determined in accordance with
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time
Factors that could cause actual results to differ materially from those described in this press release include, among others: financial condition and results of operations;
The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in
Website: www.primowatercorp.com
EXHIBIT 1 | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Revenue, net | $ 622.0 | $ 584.6 | $ 1,761.8 | $ 1,682.1 | |||
Cost of sales | 235.5 | 236.4 | 678.7 | 702.0 | |||
Gross profit | 386.5 | 348.2 | 1,083.1 | 980.1 | |||
Selling, general and administrative expenses | 315.3 | 297.3 | 936.5 | 867.2 | |||
Loss on disposal of property, plant and equipment, net | 1.5 | 2.6 | 4.0 | 4.4 | |||
Acquisition and integration expenses | 2.6 | 3.3 | 6.4 | 12.5 | |||
Impairment charges | — | — | — | 29.1 | |||
Gain on sale of property | (5.3) | — | (5.3) | — | |||
Operating income | 72.4 | 45.0 | 141.5 | 66.9 | |||
Other expense (income), net | 6.6 | 21.2 | (4.2) | 34.6 | |||
Interest expense, net | 18.6 | 17.4 | 57.2 | 51.3 | |||
Income (loss) before income taxes | 47.2 | 6.4 | 88.5 | (19.0) | |||
Income tax expense | 13.8 | 5.1 | 28.0 | 8.9 | |||
Net income (loss) | $ 33.4 | $ 1.3 | $ 60.5 | $ (27.9) | |||
Net income (loss) per common share | |||||||
Basic | $ 0.21 | $ 0.01 | $ 0.38 | $ (0.17) | |||
Diluted | $ 0.21 | $ 0.01 | $ 0.38 | $ (0.17) | |||
Weighted average common shares outstanding (in thousands) | |||||||
Basic | 159,407 | 161,117 | 159,446 | 161,064 | |||
Diluted | 160,042 | 161,988 | 160,236 | 161,064 | |||
EXHIBIT 2 | |||
CONSOLIDATED BALANCE SHEETS | |||
(in millions of | |||
Unaudited | |||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 97.8 | $ 122.6 | |
Accounts receivable, net of allowance of | 277.5 | 258.6 | |
Inventories | 105.8 | 112.1 | |
Prepaid expenses and other current assets | 45.0 | 44.7 | |
Total current assets | 526.1 | 538.0 | |
Property, plant and equipment, net | 697.8 | 714.4 | |
Operating lease right-of-use-assets | 187.5 | 198.6 | |
1,290.4 | 1,293.0 | ||
Intangible assets, net | 869.6 | 894.7 | |
Other long-term assets, net | 22.6 | 28.3 | |
Total assets | $ 3,594.0 | $ 3,667.0 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Short-term borrowings | $ 153.3 | $ 212.3 | |
Current maturities of long-term debt | 16.3 | 17.5 | |
Accounts payable and accrued liabilities | 420.3 | 425.1 | |
Current operating lease obligations | 35.4 | 35.7 | |
Total current liabilities | 625.3 | 690.6 | |
Long-term debt | 1,269.8 | 1,283.8 | |
Operating lease obligations | 163.3 | 174.5 | |
Deferred tax liabilities | 175.8 | 170.0 | |
Other long-term liabilities | 69.1 | 65.2 | |
Total liabilities | 2,303.3 | 2,384.1 | |
Equity | |||
Common shares, no par value -159,408,344 ( | 1,285.7 | 1,283.2 | |
Additional paid-in-capital | 87.6 | 91.3 | |
Retained earnings (accumulated deficit) | 3.7 | (9.4) | |
Accumulated other comprehensive loss | (86.3) | (82.2) | |
1,290.7 | 1,282.9 | ||
Total liabilities and equity | $ 3,594.0 | $ 3,667.0 |
EXHIBIT 3 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ 33.4 | $ 1.3 | $ 60.5 | $ (27.9) | |||
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||||||
Depreciation and amortization | 65.1 | 59.6 | 190.4 | 181.0 | |||
Amortization of financing fees | 0.8 | 0.8 | 2.5 | 2.5 | |||
Share-based compensation expense | 1.4 | 3.2 | 6.7 | 10.7 | |||
(Benefit) provision for deferred income taxes | (0.6) | 3.7 | 5.8 | 5.2 | |||
Impairment charges | — | — | — | 29.1 | |||
Loss on disposal of property, plant and equipment, net | 1.5 | 2.6 | 4.0 | 4.4 | |||
Gain on sale of property | (5.3) | — | (5.3) | — | |||
Other non-cash items | 10.5 | 21.9 | (1.5) | 34.6 | |||
Change in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 10.6 | (12.9) | (22.9) | (46.1) | |||
Inventories | (1.8) | (7.4) | (2.3) | (26.5) | |||
Prepaid expenses and other current assets | 5.4 | 4.3 | 4.6 | (0.9) | |||
Other assets | (0.5) | (0.2) | (0.8) | (0.2) | |||
Accounts payable and accrued liabilities and other liabilities | 27.6 | 15.8 | 17.5 | 17.1 | |||
Net cash provided by operating activities | 148.1 | 92.7 | 259.2 | 183.0 | |||
Cash flows from investing activities: | |||||||
Acquisitions, net of cash received | (1.6) | (5.3) | (24.7) | (12.7) | |||
Additions to property, plant and equipment | (46.3) | (70.0) | (136.0) | (155.2) | |||
Additions to intangible assets | (3.3) | (4.0) | (8.7) | (8.9) | |||
Proceeds from sale of property, plant and equipment | 0.4 | 0.6 | 0.9 | 1.6 | |||
Proceeds from sale of business, net of cash sold | 0.1 | — | 0.6 | — | |||
Proceeds from sale of property | 8.7 | — | 8.7 | — | |||
Other investing activities | 0.8 | (2.1) | 4.1 | (1.7) | |||
Net cash used in investing activities | (41.2) | (80.8) | (155.1) | (176.9) | |||
Cash flows from financing activities: | |||||||
Payments of long-term debt | (4.3) | (4.2) | (14.1) | (13.9) | |||
Proceeds from short-term borrowings | 12.0 | 12.0 | 116.0 | 22.0 | |||
Payments on short-term borrowings | (88.0) | — | (181.0) | — | |||
Issuance of common shares | 1.0 | 0.5 | 5.7 | 2.1 | |||
Common shares repurchased and canceled | (0.6) | (11.0) | (22.4) | (13.0) | |||
Dividends paid to common shareholders | (12.7) | (11.3) | (38.6) | (34.2) | |||
Payment of deferred consideration for acquisitions | (0.4) | (2.2) | (1.4) | (2.3) | |||
Other financing activities | (1.4) | 1.4 | 7.0 | 6.0 | |||
Net cash used in financing activities | (94.4) | (14.8) | (128.8) | (33.3) | |||
Effect of exchange rate changes on cash | (1.5) | (3.8) | (0.1) | (5.7) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 11.0 | (6.7) | (24.8) | (32.9) | |||
Cash and cash equivalents and restricted cash, beginning of period | 86.8 | 102.2 | 122.6 | 128.4 | |||
Cash and cash equivalents and restricted cash, end of period | $ 97.8 | $ 95.5 | $ 97.8 | $ 95.5 | |||
EXHIBIT 4 | ||||||||
SEGMENT INFORMATION | ||||||||
(in millions of | ||||||||
Unaudited | ||||||||
For the Three Months Ended | ||||||||
Other | Total | |||||||
Revenue, net | ||||||||
Water Direct/Water Exchange | $ 356.2 | $ 63.2 | $ 11.8 | $ 431.2 | ||||
Water Refill/Water Filtration | 62.0 | 10.2 | 1.0 | 73.2 | ||||
Other Water | 13.6 | 0.3 | 20.2 | 34.1 | ||||
Water Dispensers | 16.5 | 0.2 | — | 16.7 | ||||
Other | 21.5 | 6.9 | 38.4 | 66.8 | ||||
Total | $ 469.8 | $ 80.8 | $ 71.4 | $ 622.0 | ||||
Gross profit | $ 303.1 | $ 55.7 | $ 27.7 | $ 386.5 | ||||
Gross margin % | 64.5 % | 68.9 % | 38.8 % | 62.1 % | ||||
Selling, general and administrative expenses | $ 235.1 | $ 46.3 | $ 33.9 | $ 315.3 | ||||
SG&A % of revenue | 50.0 % | 57.3 % | 47.5 % | 50.7 % | ||||
Operating income (loss) | $ 70.3 | $ 9.5 | $ (7.4) | $ 72.4 | ||||
Depreciation and amortization | $ 48.9 | $ 10.4 | $ 5.8 | $ 65.1 | ||||
For the Three Months Ended | ||||||||
Other | Total | |||||||
Revenue, net | ||||||||
Water Direct/Water Exchange | $ 334.1 | $ 55.6 | $ 12.5 | $ 402.2 | ||||
Water Refill/Water Filtration | 52.6 | 8.2 | 0.8 | 61.6 | ||||
Other Water | 9.6 | 0.5 | 22.3 | 32.4 | ||||
Water Dispensers | 23.7 | — | — | 23.7 | ||||
Other | 26.8 | 7.1 | 30.8 | 64.7 | ||||
Total | $ 446.8 | $ 71.4 | $ 66.4 | $ 584.6 | ||||
Gross profit | $ 272.5 | $ 48.6 | $ 27.1 | $ 348.2 | ||||
Gross margin % | 61.0 % | 68.1 % | 40.8 % | 59.6 % | ||||
Selling, general and administrative expenses | $ 215.7 | $ 42.4 | $ 39.2 | $ 297.3 | ||||
SG&A % of revenue | 48.3 % | 59.4 % | 59.0 % | 50.9 % | ||||
Operating income (loss) | $ 52.6 | $ 5.1 | $ (12.7) | $ 45.0 | ||||
Depreciation and amortization | $ 44.2 | $ 9.5 | $ 5.9 | $ 59.6 | ||||
For the Nine Months Ended | ||||||||
Other | Total | |||||||
Revenue, net | ||||||||
Water Direct/Water Exchange | $ 1,011.5 | $ 176.4 | $ 33.2 | $ 1,221.1 | ||||
Water Refill/Water Filtration | 169.6 | 28.9 | 2.4 | 200.9 | ||||
Other Water | 36.8 | 0.8 | 55.6 | 93.2 | ||||
Water Dispensers | 45.9 | 0.7 | — | 46.6 | ||||
Other | 68.8 | 21.4 | 109.8 | 200.0 | ||||
Total | $ 1,332.6 | $ 228.2 | $ 201.0 | $ 1,761.8 | ||||
Gross profit | $ 852.6 | $ 156.6 | $ 73.9 | $ 1,083.1 | ||||
Gross Margin % | 64.0 % | 68.6 % | 36.8 % | 61.5 % | ||||
Selling, general and administrative expenses | $ 687.2 | $ 136.6 | $ 112.7 | $ 936.5 | ||||
SG&A % of Revenue | 51.6 % | 59.9 % | 56.1 % | 53.2 % | ||||
Operating income (loss) | $ 162.3 | $ 19.5 | $ (40.3) | $ 141.5 | ||||
Depreciation and amortization | $ 142.5 | $ 30.2 | $ 17.7 | $ 190.4 | ||||
For the Nine Months Ended | ||||||||
Other | Total | |||||||
Revenue, net | ||||||||
Water Direct/Water Exchange | $ 933.5 | $ 157.5 | $ 35.0 | $ 1,126.0 | ||||
Water Refill/Water Filtration | 142.1 | 24.6 | 2.0 | 168.7 | ||||
Other Water | 65.8 | 1.3 | 59.8 | 126.9 | ||||
Water Dispensers | 56.4 | — | — | 56.4 | ||||
Other | 82.8 | 22.2 | 99.1 | 204.1 | ||||
Total | $ 1,280.6 | $ 205.6 | $ 195.9 | $ 1,682.1 | ||||
Gross profit | $ 764.9 | $ 139.2 | $ 76.0 | $ 980.1 | ||||
Gross margin % | 59.7 % | 67.7 % | 38.8 % | 58.3 % | ||||
Selling, general and administrative expenses | $ 624.0 | $ 134.5 | $ 108.7 | $ 867.2 | ||||
SG&A % of revenue | 48.7 % | 65.4 % | 55.5 % | 51.6 % | ||||
Operating income (loss) | $ 129.2 | $ (27.6) | $ (34.7) | $ 66.9 | ||||
Depreciation and amortization | $ 133.8 | $ 29.4 | $ 17.8 | $ 181.0 | ||||
EXHIBIT 5 | |||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - ANALYSIS OF REVENUE | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | |||||||
Other | Primo | ||||||
Change in revenue | $ 23.0 | $ 9.4 | $ 5.0 | $ 37.4 | |||
Impact of foreign exchange (a) | 0.3 | (6.7) | 1.3 | (5.1) | |||
Change excluding foreign exchange | $ 23.3 | $ 2.7 | $ 6.3 | $ 32.3 | |||
Percentage change in revenue | 5.1 % | 13.2 % | 7.5 % | 6.4 % | |||
Percentage change in revenue excluding foreign exchange | 5.2 % | 3.8 % | 9.5 % | 5.5 % | |||
For the Nine Months Ended | |||||||
Other | Primo | ||||||
Change in revenue | $ 52.0 | $ 22.6 | $ 5.1 | $ 79.7 | |||
Impact of foreign exchange (a) | 2.3 | (4.4) | 11.5 | 9.4 | |||
Change excluding foreign exchange | $ 54.3 | $ 18.2 | $ 16.6 | $ 89.1 | |||
Percentage change in revenue | 4.1 % | 11.0 % | 2.6 % | 4.7 % | |||
Percentage change in revenue excluding foreign exchange | 4.2 % | 8.9 % | 8.5 % | 5.3 % | |||
For the Three Months Ended | |||||||
Other | Primo | ||||||
Change in gross profit | $ 30.6 | $ 7.1 | $ 0.6 | $ 38.3 | |||
Impact of foreign exchange (a) | 0.2 | (4.4) | 1.4 | (2.8) | |||
Change excluding foreign exchange | $ 30.8 | $ 2.7 | $ 2.0 | $ 35.5 | |||
Percentage change in gross profit | 11.2 % | 14.6 % | 2.2 % | 11.0 % | |||
Percentage change in gross profit excluding foreign exchange | 11.3 % | 5.6 % | 7.4 % | 10.2 % | |||
For the Nine Months Ended | |||||||
Other | Primo | ||||||
Change in gross profit | $ 87.7 | $ 17.4 | $ (2.1) | $ 103.0 | |||
Impact of foreign exchange (a) | 1.4 | (3.1) | 5.4 | 3.7 | |||
Change excluding foreign exchange | $ 89.1 | $ 14.3 | $ 3.3 | $ 106.7 | |||
Percentage change in gross profit | 11.5 % | 12.5 % | (2.8) % | 10.5 % | |||
Percentage change in gross profit excluding foreign exchange | 11.6 % | 10.3 % | 4.3 % | 10.9 % | |||
(a) Impact of foreign exchange is the difference between the current period revenue and gross profit translated |
EXHIBIT 6 | |||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE | |||||||
(EBITDA) | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Net income (loss) | $ 33.4 | $ 1.3 | $ 60.5 | $ (27.9) | |||
Interest expense, net | 18.6 | 17.4 | 57.2 | 51.3 | |||
Income tax expense | 13.8 | 5.1 | 28.0 | 8.9 | |||
Depreciation and amortization | 65.1 | 59.6 | 190.4 | 181.0 | |||
EBITDA | $ 130.9 | $ 83.4 | $ 336.1 | $ 213.3 | |||
Acquisition and integration costs (a) | 2.6 | 3.3 | 6.4 | 12.5 | |||
Share-based compensation costs (b) | 1.4 | 3.2 | 6.7 | 10.7 | |||
Impairment charges (c) | — | — | — | 29.1 | |||
Foreign exchange and other losses (gains), net (d) | 10.6 | 21.3 | (0.3) | 36.7 | |||
Loss on disposal of property, plant and equipment, net (e) | 1.5 | 2.6 | 4.0 | 4.4 | |||
Gain on sale of property (f) | (5.3) | — | (5.3) | — | |||
Other adjustments, net (g) | (0.8) | 3.1 | 9.8 | 6.1 | |||
Adjusted EBITDA | $ 140.9 | $ 116.9 | $ 357.4 | $ 312.8 | |||
Revenue, net | $ 622.0 | $ 584.6 | $ 1,761.8 | $ 1,682.1 | |||
Adjusted EBITDA margin % | 22.7 % | 20.0 % | 20.3 % | 18.6 % |
For the Three Months Ended | For the Nine Months Ended | |||||||
Location in | ||||||||
(Unaudited) | (Unaudited) | |||||||
(a) Acquisition and | Acquisition and integration | $ 2.6 | $ 3.3 | $ 6.4 | $ 12.5 | |||
(b) Share-based | Selling, general and | 1.4 | 3.2 | 6.7 | 10.7 | |||
(c) Impairment charges | Impairment charges | — | — | — | 29.1 | |||
(d) Foreign exchange and | Other expense (income), | 10.6 | 21.3 | (0.3) | 36.7 | |||
(e) Loss on disposal of | Loss on disposal of | 1.5 | 2.6 | 4.0 | 4.4 | |||
(f) Gain on sale of property | Gain on sale of property | (5.3) | — | (5.3) | — | |||
(g) Other adjustments, net | Other expense (income), | (0.8) | 0.1 | (1.5) | (1.6) | |||
Selling, general and | — | 3.0 | 11.3 | 7.7 |
EXHIBIT 7 | |||
SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW | |||
(in millions of | |||
Unaudited | |||
For the Three Months Ended | |||
Net cash provided by operating activities | $ 148.1 | $ 92.7 | |
Less: Additions to property, plant, and equipment | (46.3) | (70.0) | |
Less: Additions to intangible assets | (3.3) | (4.0) | |
Free Cash Flow | $ 98.5 | $ 18.7 | |
Acquisition and integration cash costs | 2.0 | 2.1 | |
Tariffs refunds related to property, plant, and equipment | 1.0 | — | |
Adjusted Free Cash Flow | $ 101.5 | $ 20.8 | |
For the Nine Months Ended | |||
Net cash provided by operating activities | $ 259.2 | $ 183.0 | |
Less: Additions to property, plant, and equipment | (136.0) | (155.2) | |
Less: Additions to intangible assets | (8.7) | (8.9) | |
Free Cash Flow | $ 114.5 | $ 18.9 | |
Acquisition and integration cash costs | 6.0 | 10.2 | |
Cash costs related to additions to property, plant and equipment for integration of acquired entities | 0.2 | — | |
Cash taxes paid for property sales | 0.8 | — | |
Tariffs refunds related to property, plant, and equipment | 2.4 | — | |
Adjusted Free Cash Flow | $ 123.9 | $ 29.1 | |
| EXHIBIT 8 | ||||||
SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Net income (loss) (as reported) | $ 33.4 | $ 1.3 | $ 60.5 | $ (27.9) | |||
Adjustments: | |||||||
Amortization expense of customer lists | 11.6 | 11.7 | 34.1 | 36.7 | |||
Acquisition and integration costs | 2.6 | 3.3 | 6.4 | 12.5 | |||
Share-based compensation costs | 1.4 | 3.2 | 6.7 | 10.7 | |||
Impairment charges | — | — | — | 29.1 | |||
Foreign exchange and other losses (gains), net | 10.6 | 21.3 | (0.3) | 36.7 | |||
Gain on sale of property | (5.3) | — | (5.3) | — | |||
Other adjustments, net | (0.8) | 3.1 | 9.8 | 6.1 | |||
Tax impact of adjustments (a) | (1.3) | (8.2) | (6.0) | (21.0) | |||
Adjusted net income | $ 52.2 | $ 35.7 | $ 105.9 | $ 82.9 | |||
Earnings Per Share (as reported) | |||||||
Net income (loss) | $ 33.4 | $ 1.3 | $ 60.5 | $ (27.9) | |||
Basic EPS | $ 0.21 | $ 0.01 | $ 0.38 | $ (0.17) | |||
Diluted EPS | $ 0.21 | $ 0.01 | $ 0.38 | $ (0.17) | |||
Weighted average common shares outstanding (in thousands) | |||||||
Basic | 159,407 | 161,117 | 159,446 | 161,064 | |||
Diluted | 160,042 | 161,988 | 160,236 | 161,064 | |||
Adjusted Earnings Per Share (Non-GAAP) | |||||||
Adjusted net income (Non-GAAP) | $ 52.2 | $ 35.7 | $ 105.9 | $ 82.9 | |||
Adjusted diluted EPS (Non-GAAP) | $ 0.33 | $ 0.22 | $ 0.66 | $ 0.51 | |||
Diluted weighted average common shares outstanding (in thousands) (Non-GAAP) (b) | 160,042 | 161,988 | 160,236 | 161,996 | |||
(a) The tax effect for adjusted net income is based upon an analysis of the statutory tax treatment and the applicable tax rate for the jurisdiction in which the pre-tax adjusting items incurred and for which realization of the resulting tax benefit (if any) is expected. A reduced or 0% tax rate is applied to jurisdictions where we do not expect to realize a tax benefit due to a history of operating losses or other factors resulting in a valuation allowance related to deferred tax assets. | |||||||
(b) Includes the impact of dilutive securities of 932 for the nine months ended |
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