Primo Water Corporation announced unaudited consolidated earnings results for the first quarter ended March 31, 2016. For the quarter, the company announced net sales of $32,296,000 compared to $29,213,000 for the same period a year ago. Income from operations was $1,513,000 compared to $320,000 for the same period a year ago. Income from continuing operations was $1,042,000 or $0.04 per basic and diluted share compared to loss from continuing operations of $199,000 or $0.01 per basic and diluted share for the same period a year ago. Net income was $1,031,000 or $0.04 per basic and diluted share compared to net loss of $237,000 or $0.01 per basic and diluted share for the same period a year ago. Net cash provided by operating activities was $2,715,000 against $1,883,000 a year ago. Purchases of property and equipment was $2,938,000 against $1,474,000 a year ago. EBITDA was $3,921,000 compared to $2,905,000 for the same period a year ago. Adjusted EBITDA was $4,921,000 compared to $3,664,000 for the same period a year ago. Pro forma net income from continuing operations was $2,002,000 or $0.07 per diluted share compared to $522,000 or $0.02 per basic and diluted share for the same period a year ago. Net sales increased 10.6% driven by increase in both Water and Dispenser segment net sales. Adjusted EBITDA increased 34.3% driven by the increase in net sales and margin expansion.

For the second quarter of fiscal 2016, the company expects net sales of $33.3 to $34.3 million. Looking at cash flow for the second quarter, adjusted EBITDA to be in the range of $5.5 to $5.9 million or an EBITDA margin of 16% to 17%, up from 14.3% in 2015.

For the full year 2016, the company raised outlook due to better-than-expected results for the first quarter, and now expect sales for the full year to be in the range of $132.2 million to $134.2 million, up slightly from previous guidance. The company expects adjusted EBITDA to be in the range of $21.5 million to $22.3 million up from previous guidance. The company continue to expect interest expense to be approximately $1.9 million and CapEx to be in the range of $10 million to $12 million, resulting in free cash flow between $7 million and $10 million.