Primo Water Reports Third Quarter 2024 Results and Expects to Close Transaction with BlueTriton Brands on November 8, 2024
Primo Water reported strong Q3 2024 results with revenue increasing 8.8% to $511 million, driven by 7.4% organic growth. Gross margin improved 20 bps to 64.7%, while net income rose to $38 million. Adjusted EBITDA grew 11.4% to $125 million with a margin of 24.4%. The company expects to close its transaction with BlueTriton Brands on November 8, 2024, after which it will begin trading as Primo Brands (NYSE:PRMB) on November 11th. Growth was notable across channels, with Water Direct/Exchange up 8.0%, Water Refill/Filtration up 7.1%, and Other Water showing significant growth of 102.2%.
Primo Water ha riportato solide performance per il terzo trimestre del 2024, con un aumento dei ricavi dell'8,8% a 511 milioni di dollari, sostenuto da una crescita organica del 7,4%. Il margine lordo è migliorato di 20 punti base, raggiungendo il 64,7%, mentre il reddito netto è salito a 38 milioni di dollari. L'EBITDA rettificato è cresciuto dell'11,4% a 125 milioni di dollari, con un margine del 24,4%. L'azienda prevede di chiudere la transazione con BlueTriton Brands l'8 novembre 2024, dopo di che inizierà a scambiare come Primo Brands (NYSE:PRMB) l'11 novembre. La crescita è stata notevole attraverso i canali, con Water Direct/Exchange in aumento dell'8,0%, Water Refill/Filtration in aumento del 7,1% e Other Water che ha mostrato una crescita significativa del 102,2%.
Primo Water reportó resultados sólidos en el tercer trimestre de 2024, con un aumento de ingresos del 8.8% hasta $511 millones, impulsado por un crecimiento orgánico del 7.4%. El margen bruto mejoró 20 puntos base, alcanzando el 64.7%, mientras que el ingreso neto aumentó a $38 millones. El EBITDA ajustado creció un 11.4% hasta los $125 millones, con un margen del 24.4%. La compañía espera cerrar su transacción con BlueTriton Brands el 8 de noviembre de 2024, tras lo cual comenzará a cotizar como Primo Brands (NYSE:PRMB) el 11 de noviembre. El crecimiento fue notable a través de los canales, con Water Direct/Exchange en aumento del 8.0%, Water Refill/Filtration en aumento del 7.1% y Other Water mostrando un crecimiento significativo del 102.2%.
프리모 워터는 2024년 3분기 실적이 강하게 나타났으며, 매출이 8.8% 증가한 5억 1100만 달러에 달했고, 이는 7.4%의 유기적 성장에 힘입은 결과입니다. 총 이익률은 20bp 개선되어 64.7%에 이르렀고, 순이익은 3800만 달러로 증가했습니다. 조정된 EBITDA는 11.4% 증가하여 1억 2500만 달러로, 마진은 24.4%입니다. 회사는 2024년 11월 8일 블루트리톤 브랜드와의 거래를 마무리할 것으로 예상하며, 그 이후 11월 11일부터 프리모 브랜드 (NYSE:PRMB)로 거래를 시작할 예정입니다. 성장세는 모든 채널에서 두드러졌으며, Water Direct/Exchange는 8.0% 증가, Water Refill/Filtration은 7.1% 증가, 그리고 Other Water는 102.2%의 큰 성장을 보였습니다.
Primo Water a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus en hausse de 8,8% à 511 millions de dollars, soutenus par une croissance organique de 7,4%. La marge brute s'est améliorée de 20 points de base pour atteindre 64,7%, tandis que le revenu net a augmenté à 38 millions de dollars. L'EBITDA ajusté a augmenté de 11,4% pour atteindre 125 millions de dollars, avec une marge de 24,4%. L'entreprise prévoit de finaliser sa transaction avec BlueTriton Brands le 8 novembre 2024, après quoi elle commencera à être cotée sous le nom de Primo Brands (NYSE:PRMB) le 11 novembre. La croissance a été remarquable à travers les canaux, avec Water Direct/Exchange en hausse de 8,0%, Water Refill/Filtration en hausse de 7,1% et Other Water affichant une croissance significative de 102,2%.
Primo Water berichtete von starken Ergebnissen im dritten Quartal 2024, mit einem Umsatzwachstum von 8,8% auf 511 Millionen Dollar, angetrieben durch ein organisches Wachstum von 7,4%. Bruttomarge verbesserte sich um 20 Basispunkte auf 64,7%, während der Nettoertrag auf 38 Millionen Dollar anstieg. Das bereinigte EBITDA wuchs um 11,4% auf 125 Millionen Dollar mit einer Marge von 24,4%. Das Unternehmen erwartet, die Transaktion mit BlueTriton Brands am 8. November 2024 abzuschließen, wonach es ab dem 11. November als Primo Brands (NYSE:PRMB) gehandelt wird. Das Wachstum war in allen Kanälen bemerkenswert, mit einem Anstieg von 8,0% bei Water Direct/Exchange, 7,1% bei Water Refill/Filtration und Other Water, das ein signifikantes Wachstum von 102,2% zeigte.
- Revenue increased 8.8% to $511 million
- Gross margin improved by 20 bps to 64.7%
- Net income increased to $38 million from $34 million
- Adjusted EBITDA grew 11.4% to $125 million
- Strong organic growth of 7.4%
- Other Water segment grew 102.2%
- Other segment revenue declined 35.5%
- Free cash flow decreased to $55 million from $93 million in prior year
Insights
Strong Q3 performance with
- Water Direct/Exchange segment grew
8.0% , showing core business strength - Mountain Valley retail segment surged
102.2% , indicating successful market penetration - Adjusted EBITDA increased
11.4% to$125M - Free cash flow generation of
$55M
The imminent BlueTriton merger marks a strategic transformation, potentially creating significant synergies and market opportunities. The strong Q3 results position the company well for this transition, with both volume and pricing contributing to growth.
The merger with BlueTriton represents a transformative moment in the water solutions industry. The combined entity, Primo Brands (PRMB), will leverage complementary strengths: Primo's direct-to-consumer expertise and BlueTriton's retail presence. Market indicators are positive with robust volume growth across channels and successful pricing initiatives driving margin expansion. The
- Revenue of
, increased$511 million 8.8% , including7.4% contribution from organic growth - Gross margin of
64.7% , increased 20 bps, and net income increased to$38 million - Adjusted EBITDA of
, increased$125 million 11.4% , and Adjusted EBITDA margin of24.4% , increased 60 bps - Expected to begin trading on November 11th as Primo Brands (NYSE:PRMB)
"Once again, we had a fantastic quarter, exceeding revenue and volume expectations across our core water channels. Revenue growth was driven by both volume and pricing, leading to earnings growth and margin expansion across our business. Our focus on the 'must-wins' of delivering exceptional customer service, being the water solutions partner of choice, and providing operational excellence continues to drive growth and creates value for our stakeholders," said Robbert Rietbroek, Chief Executive Officer.
"Turning to our planned business combination the Transaction with BlueTriton, earlier this week we were granted a final order approving the Transaction from the
(Unless stated otherwise, all third quarter 2024 comparisons are relative to the third quarter of 2023; all information is in
THIRD QUARTER HIGHLIGHTS - CONTINUING OPERATIONS
- Revenue increased
8.8% to compared to$511 million driven by revenue growth with$470 million 5.0% of the growth attributable to volume and3.8% attributable to pricing. Contribution from organic growth was7.4% for the quarter. Revenue growth by channel includes8.0% in Water Direct / Water Exchange,7.1% in Water Refill / Water Filtration and102.2% in Other Water, which is primarily Mountain Valley Spring water sold at retail and on-premise. - Gross profit increased
9.1% to compared to$331 million . Gross margin increased 20 bps to$303 million 64.7% compared to64.5% , driven by pricing, increased volume and operating efficiencies. - SG&A expenses increased
7.1% to compared to$262 million . The increase was driven by higher selling and operating costs that supported volume and revenue growth.$245 million - Reported net income and net income per diluted share were
and$38 million , respectively, compared to reported net income and net income per diluted share of$0.24 and$34 million , respectively. Adjusted net income and adjusted net income per diluted share were$0.21 and$56 million , respectively, compared to$0.35 and$39 million , respectively.$0.24 - Adjusted EBITDA increased
11.4% to compared to$125 million , driven by pricing initiatives, customer demand and effective expense management. Adjusted EBITDA margin was$112 million 24.4% , compared to23.8% . - Net cash provided by operating activities of
, less$91 million of capital expenditures and additions to intangible assets, resulted in$36 million of free cash flow, or$55 million of adjusted free cash flow (adjusting for the items set forth on Exhibit 6), compared to net cash provided by operating activities of$60 million and adjusted free cash flow of$127 million in the prior year.$93 million
For the Three Months Ended | |||||
(USD $M except % or unless as otherwise noted) | September 28, 2024 | September 30, 2023 | Y/Y Change | ||
Revenue, net | $ 511.4 | $ 470.0 | 8.8 % | ||
Net income from continuing operations | $ 38.2 | $ 33.7 | $ 4.5 | ||
Net income from continuing operations per diluted share | $ 0.24 | $ 0.21 | $ 0.03 | ||
Adjusted net income from continuing operations | $ 56.4 | $ 38.8 | $ 17.6 | ||
Adjusted net income from continuing operations per diluted share | $ 0.35 | $ 0.24 | $ 0.11 | ||
Adjusted EBITDA | $ 124.7 | $ 111.9 | 11.4 % | ||
Adjusted EBITDA margin % | 24.4 % | 23.8 % | 60 bps |
THIRD QUARTER 2024 RESULTS CONFERENCE CALL
Primo Water will host a conference call, to be simultaneously webcast, on Thursday, November 7, 2024, at 10:00 a.m. Eastern Time. A question-and-answer session will follow management's presentation. To participate, please call the following numbers:
Details for the Earnings Conference Call:
Date: November 7, 2024
Time: 10:00 a.m. Eastern Time
International: (437) 900-0527
Conference ID: 66986
Webcast Link: https://app.webinar.net/aerzBkLmwnN
A slide presentation and live audio webcast will be available through Primo Water's website at https://www.primowatercorp.com.
Replay Information:
The earnings conference call will be recorded and archived for playback on the investor relations section of Primo Water's website.
THIRD QUARTER PERFORMANCE - CONTINUING OPERATIONS
Revenue growth by channel is tabulated below:
For the Three Months Ended | |||||||
(in millions of | September 28, 2024 | September 30, 2023 | $ Change | % Change | |||
Revenue, net | |||||||
Water Direct/Water Exchange | $ 384.8 | $ 356.2 | $ 28.6 | 8.0 % | |||
Water Refill/Water Filtration | 66.4 | 62.0 | 4.4 | 7.1 % | |||
Other Water1 | 27.5 | 13.6 | 13.9 | 102.2 % | |||
Water Dispensers | 18.7 | 16.5 | 2.2 | 13.3 % | |||
Other | 14.0 | 21.7 | (7.7) | (35.5 %) | |||
Revenue, net as reported | $ 511.4 | $ 470.0 | $ 41.4 | 8.8 % |
1. Primarily Mountain Valley retail and on-premise revenue |
TRANSACTION RELATED MATTERS
The
The combined company, Primo Brands Corporation, is expected to begin trading on the New York Stock Exchange under the ticker symbol "PRMB" as early as November 11, 2024.
ABOUT PRIMO WATER CORPORATION
Primo Water is a leading
Primo Water's water solutions expand consumer access to purified, spring, and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo Water is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association (IBWA) in
Primo Water is headquartered in
Non-GAAP Measures
To supplement its reporting of financial measures determined in accordance with generally accepted accounting principles in
Safe Harbor Statements
This press release contains forward-looking statements and forward-looking information 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 Primo Water makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo Water cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. You can identify forward-looking statements by words such as "may," "will," "would," "should," "could," "expect," "aim," "anticipate," "believe," "estimate," "intend," "plan," "predict," "project," "seek," "potential," "opportunities," and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. The forward-looking statements contained in this press release include, but are not limited to, statements regarding future financial and operating trends and results (including Primo Water's outlook on full-year 2024 revenue, Adjusted EBITDA and Adjusted Free Cash Flow on a standalone basis), the Transaction (including the anticipated timing of the completion of the Transaction), the anticipated benefits of the Transaction, including estimated synergies, and related matters. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate.
Factors that could cause actual results to differ materially from those described in this press release include, among others: Primo Water's and BlueTriton's ability to complete the Transaction on the anticipated terms and schedule; the risk that disruptions from the Transaction will harm Primo Water's or the combined company's business; Primo Water's ability to compete successfully in the markets in which it operates; Primo Water's ability to manage supply chain disruptions and cost increases related to inflation; fluctuations in commodity prices and Primo Water's ability to pass on increased costs to its customers or hedge against such rising costs, and the impact of those increased prices on its volumes; Primo Water's ability to maintain favorable arrangements and relationships with its suppliers; Primo Water's ability to manage its operations successfully; currency fluctuations that adversely affect the exchange between currencies including the
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 Primo Water's Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. Primo Water does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law.
Website: www.primowatercorp.com
PRIMO WATER CORPORATION | EXHIBIT 1 | ||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
September 28, | September 30, | September 28, | September 30, | ||||
Revenue, net | $ 511.4 | $ 470.0 | $ 1,448.4 | $ 1,333.1 | |||
Cost of sales | 180.6 | 166.7 | 508.3 | 480.0 | |||
Gross profit | 330.8 | 303.3 | 940.1 | 853.1 | |||
Selling, general and administrative expenses | 262.3 | 244.8 | 776.1 | 726.0 | |||
Loss on disposal of property, plant and equipment, net | 1.3 | 1.6 | 4.1 | 3.8 | |||
Acquisition and integration expenses | 8.2 | 2.4 | 26.6 | 6.0 | |||
Gain on sale of property | — | (5.3) | (0.5) | (5.3) | |||
Operating income | 59.0 | 59.8 | 133.8 | 122.6 | |||
Other expense (income), net | 1.1 | (4.0) | 1.2 | (3.7) | |||
Interest expense, net | 5.8 | 17.8 | 25.0 | 54.8 | |||
Income from continuing operations before income taxes | 52.1 | 46.0 | 107.6 | 71.5 | |||
Income tax expense | 13.9 | 12.3 | 37.4 | 21.0 | |||
Net income from continuing operations | $ 38.2 | $ 33.7 | $ 70.2 | $ 50.5 | |||
Net income (loss) from discontinued operations, net of income taxes | 0.4 | (0.3) | 9.4 | 10.0 | |||
Net income | $ 38.6 | $ 33.4 | $ 79.6 | $ 60.5 | |||
Net income per common share | |||||||
Basic: | |||||||
Continuing operations | $ 0.24 | $ 0.21 | $ 0.44 | $ 0.32 | |||
Discontinued operations | $ — | $ — | $ 0.06 | $ 0.06 | |||
Net income | $ 0.24 | $ 0.21 | $ 0.50 | $ 0.38 | |||
Diluted: | |||||||
Continuing operations | $ 0.24 | $ 0.21 | $ 0.43 | $ 0.32 | |||
Discontinued operations | $ — | $ — | $ 0.06 | $ 0.06 | |||
Net income | $ 0.24 | $ 0.21 | $ 0.49 | $ 0.38 | |||
Weighted-average common shares outstanding (in thousands) | |||||||
Basic | 160,363 | 159,407 | 160,016 | 159,446 | |||
Diluted | 162,062 | 160,042 | 161,577 | 160,236 | |||
PRIMO WATER CORPORATION | EXHIBIT 2 | ||
CONSOLIDATED BALANCE SHEETS | |||
(in millions of | |||
Unaudited | |||
September 28, 2024 | December 30, 2023 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 667.3 | $ 507.9 | |
Accounts receivable, net of allowance of | 185.8 | 156.0 | |
Inventories | 48.6 | 47.3 | |
Prepaid expenses and other current assets | 18.8 | 26.0 | |
Current assets of discontinued operations | 77.8 | 128.7 | |
Total current assets | 998.3 | 865.9 | |
Property, plant and equipment, net | 544.1 | 556.5 | |
Operating lease right-of-use-assets | 143.1 | 136.0 | |
Goodwill | 1,009.4 | 1,004.6 | |
Intangible assets, net | 709.3 | 714.2 | |
Other long-term assets, net | 20.6 | 20.2 | |
Long-term assets of discontinued operations | 138.3 | 225.6 | |
Total assets | $ 3,563.1 | $ 3,523.0 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Current maturities of long-term debt | $ 14.9 | $ 14.2 | |
Accounts payable and accrued liabilities | 294.1 | 276.4 | |
Current operating lease obligations | 26.2 | 25.6 | |
Current liabilities of discontinued operations | 90.9 | 109.9 | |
Total current liabilities | 426.1 | 426.1 | |
Long-term debt | 1,268.8 | 1,270.8 | |
Operating lease obligations | 129.4 | 124.0 | |
Deferred tax liabilities | 142.0 | 144.2 | |
Other long-term liabilities | 79.4 | 64.4 | |
Long-term liabilities of discontinued operations | 34.5 | 52.2 | |
Total liabilities | 2,080.2 | 2,081.7 | |
Equity | |||
Common shares, no par value - 160,341,329 (December 30, 2023 - 159,480,638) shares issued | 1,311.1 | 1,288.6 | |
Additional paid-in capital | 91.2 | 90.6 | |
Retained earnings | 194.5 | 167.2 | |
Accumulated other comprehensive loss | (113.9) | (105.1) | |
Total Primo Water Corporation equity | 1,482.9 | 1,441.3 | |
Total liabilities and equity | $ 3,563.1 | $ 3,523.0 |
PRIMO WATER CORPORATION | EXHIBIT 3 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
September 28, | September 30, | September 28, | September 30, | ||||
Cash flows from operating activities of continuing operations: | |||||||
Net income | $ 38.6 | $ 33.4 | $ 79.6 | $ 60.5 | |||
Net income (loss) from discontinued operations, net of income taxes | 0.4 | $ (0.3) | 9.4 | 10.0 | |||
Net income from continuing operations | $ 38.2 | $ 33.7 | 70.2 | 50.5 | |||
Adjustments to reconcile net income from continuing operations to | |||||||
Depreciation and amortization | 51.0 | 49.3 | 148.9 | 143.6 | |||
Amortization of financing fees | 0.7 | 0.8 | 2.4 | 2.5 | |||
Share-based compensation expense | 4.6 | 1.4 | 17.1 | 6.1 | |||
Provision (benefit) for deferred income taxes | 1.6 | (0.4) | (1.4) | 6.1 | |||
Loss on disposal of property, plant and equipment, net | 1.3 | 1.6 | 4.1 | 3.8 | |||
Gain on sale of property | — | (5.3) | (0.5) | (5.3) | |||
Other non-cash items | 1.4 | (1.4) | (1.2) | (4.6) | |||
Change in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (25.3) | 14.6 | (28.0) | (4.2) | |||
Inventories | (1.8) | (0.1) | (3.6) | 4.6 | |||
Prepaid expenses and other current assets | 4.4 | 3.8 | 4.9 | 5.7 | |||
Other assets | (4.4) | (0.4) | (0.6) | (0.9) | |||
Accounts payable and accrued liabilities and other liabilities | 19.3 | 29.1 | 43.4 | 14.3 | |||
Net cash provided by operating activities of continuing operations | 91.0 | 126.7 | 255.7 | 222.2 | |||
Cash flows from investing activities of continuing operations: | |||||||
Acquisitions, net of cash received | (0.3) | (1.6) | (24.5) | (24.6) | |||
Additions to property, plant and equipment | (33.8) | (34.3) | (108.7) | (103.5) | |||
Additions to intangible assets | (2.6) | (2.5) | (7.9) | (6.5) | |||
Proceeds from sale of property, plant and equipment | — | 0.2 | 0.2 | 0.4 | |||
Proceeds from sale of property | — | 8.7 | 1.0 | 8.7 | |||
Other investing activities | — | 0.9 | 2.7 | 2.8 | |||
Net cash used in investing activities of continuing operations | (36.7) | (28.6) | (137.2) | (122.7) | |||
Cash flows from financing activities of continuing operations: | |||||||
Payments of long-term debt | (3.4) | (2.7) | (10.0) | (8.7) | |||
Proceeds from short-term borrowings | — | 12.0 | — | 116.0 | |||
Payments on short-term borrowings | — | (88.0) | — | (181.0) | |||
Issuance of common shares | 0.8 | 1.0 | 17.5 | 5.7 | |||
Common shares repurchased and canceled | (0.1) | (0.6) | (20.3) | (22.4) | |||
Financing fees | (0.9) | — | (0.9) | — | |||
Dividends paid to common shareholders | (14.6) | (12.7) | (43.8) | (38.6) | |||
Payment of contingent consideration for acquisitions | (0.2) | (0.3) | (2.0) | (1.3) | |||
Other financing activities | — | (2.6) | — | (7.6) | |||
Net cash used in financing activities of continuing operations | (18.4) | (93.9) | (59.5) | (137.9) | |||
Cash flows from discontinued operations: | |||||||
Net cash provided by operating activities from discontinued operations | 4.6 | 21.4 | 6.8 | 37.0 | |||
Net cash provided by (used in) investing activities from discontinued operations | 16.8 | (12.6) | 75.9 | (32.4) | |||
Net cash (used in) provided by financing activities from discontinued operations | (2.0) | (0.5) | (1.0) | 9.1 | |||
Net cash provided by discontinued operations | 19.4 | 8.3 | 81.7 | 13.7 | |||
Effect of exchange rate changes on cash | 0.3 | (1.5) | (0.1) | (0.1) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 55.6 | 11.0 | 140.6 | (24.8) | |||
Cash and cash equivalents and restricted cash, beginning of period | 615.5 | 86.8 | 530.5 | 122.6 | |||
Cash and cash equivalents and restricted cash, end of period | $ 671.1 | $ 97.8 | $ 671.1 | $ 97.8 | |||
Cash and cash equivalents and restricted cash from discontinued operations, end of period | 3.8 | 36.9 | 3.8 | 36.9 | |||
Cash and cash equivalents and restricted cash of continuing operations, end of period | $ 667.3 | $ 60.9 | $ 667.3 | $ 60.9 |
PRIMO WATER CORPORATION | EXHIBIT 4 | |||||
SEGMENT INFORMATION | ||||||
(in millions of | ||||||
Unaudited | ||||||
For the Three Months Ended September 28, 2024 | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 384.8 | $ — | $ 384.8 | |||
Water Refill/Water Filtration | 66.4 | — | 66.4 | |||
Other Water1 | 27.5 | — | 27.5 | |||
Water Dispensers | 18.7 | — | 18.7 | |||
Other | 13.8 | 0.2 | 14.0 | |||
Total | $ 511.2 | $ 0.2 | $ 511.4 | |||
Gross profit | $ 330.6 | $ 0.2 | $ 330.8 | |||
Gross margin % | 64.7 % | 100.0 % | 64.7 % | |||
Selling, general and administrative expenses | $ 251.6 | $ 10.7 | $ 262.3 | |||
SG&A % of revenue2 | 49.2 % | NM | 51.3 % | |||
Operating income (loss) | $ 76.7 | $ (17.7) | $ 59.0 | |||
Depreciation and amortization | $ 50.5 | $ 0.5 | $ 51.0 | |||
For the Three Months Ended September 30, 2023 | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 356.2 | $ — | $ 356.2 | |||
Water Refill/Water Filtration | 62.0 | — | 62.0 | |||
Other Water1 | 13.6 | — | 13.6 | |||
Water Dispensers | 16.5 | — | 16.5 | |||
Other | 21.5 | 0.2 | 21.7 | |||
Total | $ 469.8 | $ 0.2 | $ 470.0 | |||
Gross profit | $ 303.1 | $ 0.2 | $ 303.3 | |||
Gross margin % | 64.5 % | 100.0 % | 64.5 % | |||
Selling, general and administrative expenses | $ 235.1 | $ 9.7 | $ 244.8 | |||
SG&A % of revenue2 | 50.0 % | NM | 52.1 % | |||
Operating income (loss) | $ 70.3 | $ (10.5) | $ 59.8 | |||
Depreciation and amortization | $ 48.9 | $ 0.4 | $ 49.3 | |||
____________________________ | ||||||
1 Primarily Mountain Valley retail and on-premise revenue | ||||||
2 "NM" defined as not meaningful | ||||||
For the Nine Months Ended September 28, 2024 | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 1,092.4 | $ — | $ 1,092.4 | |||
Water Refill/Water Filtration | 186.2 | — | 186.2 | |||
Other Water1 | 67.4 | — | 67.4 | |||
Water Dispensers | 48.7 | — | 48.7 | |||
Other | 52.9 | 0.8 | 53.7 | |||
Total | $ 1,447.6 | $ 0.8 | $ 1,448.4 | |||
Gross profit | $ 939.5 | $ 0.6 | $ 940.1 | |||
Gross Margin % | 64.9 % | 75.0 % | 64.9 % | |||
Selling, general and administrative expenses | $ 733.0 | $ 43.1 | $ 776.1 | |||
SG&A % of revenue2 | 50.6 % | NM | 53.6 % | |||
Operating income (loss) | $ 201.0 | $ (67.2) | $ 133.8 | |||
Depreciation and amortization | $ 147.5 | $ 1.4 | $ 148.9 | |||
For the Nine Months Ended September 30, 2023 | ||||||
Other | Total | |||||
Revenue, net | ||||||
Water Direct/Water Exchange | $ 1,011.5 | $ — | $ 1,011.5 | |||
Water Refill/Water Filtration | 169.6 | — | 169.6 | |||
Other Water1 | 36.8 | — | 36.8 | |||
Water Dispensers | 45.9 | — | 45.9 | |||
Other | 68.8 | 0.5 | 69.3 | |||
Total | $ 1,332.6 | $ 0.5 | $ 1,333.1 | |||
Gross profit | $ 852.6 | $ 0.5 | $ 853.1 | |||
Gross margin % | 64.0 % | 100.0 % | 64.0 % | |||
Selling, general and administrative expenses | $ 687.2 | $ 38.8 | $ 726.0 | |||
SG&A % of revenue2 | 51.6 % | NM | 54.5 % | |||
Operating income (loss) | $ 162.3 | $ (39.7) | $ 122.6 | |||
Depreciation and amortization | $ 142.5 | $ 1.1 | $ 143.6 | |||
____________________________ | ||||||
1 Primarily Mountain Valley retail and on-premise revenue | ||||||
2 "NM" defined as not meaningful |
PRIMO WATER CORPORATION | EXHIBIT 5 | ||||||
SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION | |||||||
(EBITDA) | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
September 28, | September 30, | September 28, | September 30, | ||||
Net income from continuing operations | $ 38.2 | $ 33.7 | $ 70.2 | $ 50.5 | |||
Interest expense, net | 5.8 | 17.8 | 25.0 | 54.8 | |||
Income tax expense | 13.9 | 12.3 | 37.4 | 21.0 | |||
Depreciation and amortization | 51.0 | 49.3 | 148.9 | 143.6 | |||
EBITDA | $ 108.9 | $ 113.1 | $ 281.5 | $ 269.9 | |||
Acquisition and integration costs (a) | 8.2 | 2.4 | 26.6 | 6.0 | |||
Share-based compensation costs (b) | 4.6 | 1.4 | 17.1 | 6.1 | |||
Foreign exchange and other losses (gains), net (c) | 1.2 | (0.2) | 2.0 | (0.1) | |||
Loss on disposal of property, plant and equipment, net (d) | 1.3 | 1.6 | 4.1 | 3.8 | |||
Gain on sale of property (e) | — | (5.3) | (0.5) | (5.3) | |||
Other adjustments, net (f) | 0.5 | (1.1) | 0.7 | 5.4 | |||
Adjusted EBITDA | $ 124.7 | $ 111.9 | $ 331.5 | $ 285.8 | |||
Revenue, net | $ 511.4 | $ 470.0 | $ 1,448.4 | $ 1,333.1 | |||
Adjusted EBITDA margin % | 24.4 % | 23.8 % | 22.9 % | 21.4 % |
For the Three Months Ended | For the Nine Months Ended | ||||||||
Location in Consolidated | September 28, | September 30, | September 28, | September 30, | |||||
(Unaudited) | (Unaudited) | ||||||||
(a) Acquisition and | Acquisition and integration | $ 8.2 | $ 2.4 | $ 26.6 | $ 6.0 | ||||
(b) Share-based | Selling, general and | 4.6 | 1.4 | 17.1 | 6.1 | ||||
(c) Foreign exchange and | Other expense (income), net | 1.2 | (0.2) | 2.0 | (0.1) | ||||
(d) Loss on disposal of | Loss on disposal of | 1.3 | 1.6 | 4.1 | 3.8 | ||||
(e) Gain on sale of property | Gain on sale of property | — | (5.3) | (0.5) | (5.3) | ||||
(f) Other adjustments, net | Other expense (income), net | — | (0.8) | (0.7) | (1.4) | ||||
Selling, general and | 0.5 | (0.3) | 1.4 | 6.8 |
PRIMO WATER CORPORATION | EXHIBIT 6 | |||
SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW | ||||
(in millions of | ||||
Unaudited | ||||
For the Three Months Ended | ||||
September 28, | September 30, | |||
Net cash provided by operating activities of continuing operations | $ 91.0 | $ 126.7 | ||
Less: Additions to property, plant, and equipment | (33.8) | (34.3) | ||
Less: Additions to intangible assets | (2.6) | (2.5) | ||
Free Cash Flow | $ 54.6 | $ 89.9 | ||
Acquisition and integration cash costs | 5.4 | 1.8 | ||
Cash costs related to additions to property, plant and equipment for integration of acquired entities | 0.4 | — | ||
Tariffs refunds related to property, plant, and equipment | — | 1.0 | ||
Adjusted Free Cash Flow | $ 60.4 | $ 92.7 | ||
For the Nine Months Ended | ||||
September 28, | September 30, | |||
Net cash provided by operating activities of continuing operations | $ 255.7 | $ 222.2 | ||
Less: Additions to property, plant, and equipment | (108.7) | (103.5) | ||
Less: Additions to intangible assets | (7.9) | (6.5) | ||
Free Cash Flow | $ 139.1 | $ 112.2 | ||
Acquisition and integration cash costs | 19.3 | 5.6 | ||
Cash costs related to additions to property, plant and equipment for integration of acquired entities | 1.1 | 0.1 | ||
COVID-19 related refunds | (0.8) | — | ||
Cash taxes paid for property sales | 1.3 | 0.8 | ||
Tariffs refunds related to property, plant, and equipment | 2.1 | 2.4 | ||
Adjusted Free Cash Flow | $ 162.1 | $ 121.1 | ||
PRIMO WATER CORPORATION | EXHIBIT 7 | ||||||
SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS | |||||||
(in millions of | |||||||
Unaudited | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||
Net income from continuing operations | $ 38.2 | $ 33.7 | $ 70.2 | $ 50.5 | |||
Adjustments: | |||||||
Amortization expense of customer lists | 7.8 | 7.7 | 22.0 | 22.4 | |||
Acquisition and integration costs | 8.2 | 2.4 | 26.6 | 6.0 | |||
Share-based compensation costs | 4.6 | 1.4 | 17.1 | 6.1 | |||
Foreign exchange and other losses (gains), net | 1.2 | (0.2) | 2.0 | (0.1) | |||
Gain on sale of property | — | (5.3) | (0.5) | (5.3) | |||
Other adjustments, net | 0.5 | (1.1) | 0.7 | 5.4 | |||
Tax impact of adjustments1 | (4.1) | 0.2 | (9.4) | (3.8) | |||
Adjusted net income | $ 56.4 | $ 38.8 | $ 128.7 | $ 81.2 | |||
Earnings Per Share (as reported) | |||||||
Net income from continuing operations | $ 38.2 | $ 33.7 | $ 70.2 | $ 50.5 | |||
Basic EPS | $ 0.24 | $ 0.21 | $ 0.44 | $ 0.32 | |||
Diluted EPS | $ 0.24 | $ 0.21 | $ 0.43 | $ 0.32 | |||
Weighted average common shares outstanding (in thousands) | |||||||
Basic | 160,363 | 159,407 | 160,016 | 159,446 | |||
Diluted | 162,062 | 160,042 | 161,577 | 160,236 | |||
Adjusted Earnings Per Share (Non-GAAP) | |||||||
Adjusted net income from continuing operations (Non-GAAP) | $ 56.4 | $ 38.8 | $ 128.7 | $ 81.2 | |||
Adjusted diluted EPS (Non-GAAP) | $ 0.35 | $ 0.24 | $ 0.80 | $ 0.51 | |||
Weighted average common shares outstanding (in thousands) | |||||||
Basic | 160,363 | 159,407 | 160,016 | 159,446 | |||
Diluted weighted average common shares outstanding (in thousands) (Non-GAAP)2 | 162,062 | 160,042 | 161,577 | 160,236 | |||
1 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 | |||||||
2 For the periods presented, the non-GAAP diluted weighted average common shares outstanding equaled the reported diluted weighted average common shares outstanding. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/primo-water-reports-third-quarter-2024-results-and-expects-to-close-transaction-with-bluetriton-brands-on-november-8-2024-302298017.html
SOURCE Primo Water Corporation
FAQ
What was Primo Water's (PRMW) revenue in Q3 2024?
When will Primo Water (PRMW) begin trading as Primo Brands?
What was Primo Water's (PRMW) Adjusted EBITDA margin in Q3 2024?