Delaware
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001-34850
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30-0278688
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(State or other jurisdiction of incorporation)
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(Commission file number)
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(I.R.S. Employer Identification No.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits
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Exhibit No.
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Exhibit Description
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99.1
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Press Release, dated March 19, 2013.
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PRIMO WATER CORPORATION
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Date: March 19, 2013
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By: |
/s/ Mark Castaneda
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Name: |
Mark Castaneda
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Title: |
Chief Financial Officer and Secretary
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Date of Event Reported:
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Commission File No:
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March 19, 2013
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001-34850
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Exhibit No.
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Exhibit Description
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||
Press Release, dated March 19, 2013.
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·
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Total sales for the year increased 10.1% to $91.5 million compared to the prior year and were consistent at $20.9 million for Q4 compared to the prior year.
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·
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Water segment sales for the year increased 6.8% to $62.7 million compared to the prior year and increased 8.2% to $15.0 million for Q4 compared to the prior year.
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·
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Total adjusted EBITDA for the year increased 84.5% to $5.5 million for fiscal 2012 compared to $3.0 million for 2011 and increased to $1.1 million compared to $(0.8) million in Q4 of the prior year.
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·
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Water segment operating income increased 17.5% to $15.9 million for the full year and increased 36.2% to $3.6 million for Q4 compared to the prior year.
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·
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Water dispenser unit sell-thru to consumers increased 36.4% to 398,619 units for the full year and increased 27.9% to 91,870 units in Q4 of 2012 compared to Q4 of the prior year.
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·
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As of December 31, 2012, 24,500 total locations offered water and/or dispensers, a 4% increase in locations compared to December 31, 2011.
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4Q12 | 4Q11 |
% Change
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||||||||||
Total locations (thousands)
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24.5 | 23.6 | 3.8 | % | ||||||||
Dispenser locations (thousands)
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8.1 | 6.9 | 17.4 | % | ||||||||
Dispenser units sell-in to retail (thousands)
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73.9 | 101.4 | (27.1 | %) | ||||||||
Dispenser units sell-thru (thousands)
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91.9 | 71.8 | 27.9 | % | ||||||||
Water Locations (thousands)
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16.4 | 16.7 | (1.5 | %) |
Three months ended
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Years ended
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|||||||||||||||
December 31,
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December 31,
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|||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
Net sales
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$ | 20,886 | $ | 21,112 | $ | 91,479 | $ | 83,062 | ||||||||
Operating costs and expenses:
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||||||||||||||||
Cost of sales
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16,000 | 17,276 | 70,081 | 63,201 | ||||||||||||
Selling, general and administrative expenses
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4,051 | 4,996 | 17,708 | 18,206 | ||||||||||||
Non-recurring and acquisition-related costs
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178 | 924 | 743 | 2,091 | ||||||||||||
Depreciation and amortization
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3,173 | 2,457 | 11,102 | 8,863 | ||||||||||||
Goodwill and other impairment
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70,525 | - | 82,013 | - | ||||||||||||
Total operating costs and expenses
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93,927 | 25,653 | 181,647 | 92,361 | ||||||||||||
Loss from operations
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(73,041 | ) | (4,541 | ) | (90,168 | ) | (9,299 | ) | ||||||||
Interest expense and other, net
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961 | 734 | 4,043 | 1,690 | ||||||||||||
Loss from continuing operations before income taxes
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(74,002 | ) | (5,275 | ) | (94,211 | ) | (10,989 | ) | ||||||||
Income tax (benefit) provision
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- | 452 | (961 | ) | 961 | |||||||||||
Loss from continuing operations
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(74,002 | ) | (5,727 | ) | (93,250 | ) | (11,950 | ) | ||||||||
Loss from discontinued operations, net of income taxes
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(3,022 | ) | (1,266 | ) | (17,779 | ) | (2,429 | ) | ||||||||
Net loss
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$ | (77,024 | ) | $ | (6,993 | ) | $ | (111,029 | ) | $ | (14,379 | ) | ||||
Basic and diluted loss per common share:
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||||||||||||||||
Loss from continuing operations
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$ | (3.11 | ) | $ | (0.24 | ) | $ | (3.93 | ) | $ | (0.55 | ) | ||||
Loss from discontinued operations
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(0.13 | ) | (0.06 | ) | (0.75 | ) | (0.11 | ) | ||||||||
Net loss
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$ | (3.24 | ) | $ | (0.30 | ) | $ | (4.68 | ) | $ | (0.66 | ) | ||||
Basic and diluted weighted average common shares outstanding
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23,752 | 23,645 | 23,725 | 21,652 |
Three months ended
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Years ended
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|||||||||||||||
December 31,
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December 31,
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|||||||||||||||
2012
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2011
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2012
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2011
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Segment revenues
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||||||||||||||||
Water
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$ | 15,044 | $ | 13,908 | $ | 62,667 | $ | 58,696 | ||||||||
Dispensers
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5,842 | 6,432 | 28,812 | 23,595 | ||||||||||||
Other
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- | 772 | - | 771 | ||||||||||||
Total revenue
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20,886 | 21,112 | 91,479 | 83,062 | ||||||||||||
Segment income (loss) from operations
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||||||||||||||||
Water
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3,607 | 2,650 | 15,942 | 13,563 | ||||||||||||
Dispensers
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(96 | ) | (619 | ) | (1,319 | ) | (1,021 | ) | ||||||||
Corporate
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(2,676 | ) | (3,191 | ) | (10,933 | ) | (10,887 | ) | ||||||||
Adjustments:
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||||||||||||||||
Non-cash, stock-based compensation expense
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208 | 326 | 1,252 | 984 | ||||||||||||
Loss (gain) on disposal of assets and other
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70 | 4 | 509 | 315 | ||||||||||||
Adjusted EBITDA
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$ | 1,113 | $ | (830 | ) | $ | 5,451 | $ | 2,954 |
December 31,
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December 31,
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|||||||
2012
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2011
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|||||||
(unaudited)
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||||||||
ASSETS
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Current assets:
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Cash
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$ | 234 | $ | 751 | ||||
Accounts receivable, net
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9,894 | 12,513 | ||||||
Inventories
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7,572 | 6,331 | ||||||
Prepaid expenses and other current assets
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812 | 3,590 | ||||||
Current assets of disposal group held for sale
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3,009 | 3,743 | ||||||
Total current assets
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21,521 | 26,928 | ||||||
Bottles, net
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3,838 | 3,704 | ||||||
Property and equipment, net
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41,947 | 45,838 | ||||||
Intangible assets, net
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12,477 | 13,107 | ||||||
Goodwill
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– | 78,823 | ||||||
Other assets
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1,960 | 1,086 | ||||||
Assets of disposal group held for sale, net of current portion
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– | 14,963 | ||||||
Total assets
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$ | 81,743 | $ | 184,449 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$ | 11,455 | $ | 9,509 | ||||
Accrued expenses and other current liabilities
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4,305 | 2,838 | ||||||
Current portion of capital leases and notes payable
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15 | 14,514 | ||||||
Current liabilities of disposal group held for sale
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2,752 | 3,205 | ||||||
Total current liabilities
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18,527 | 30,066 | ||||||
Long-term debt, capital leases and notes payable, net of current portion
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21,251 | 44 | ||||||
Other long-term liabilities
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352 | 1,710 | ||||||
Liabilities of disposal group held for sale, net of current portion
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– | 3,000 | ||||||
Total liabilities
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40,130 | 34,820 | ||||||
Commitments and contingencies
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Stockholders’ equity:
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Preferred stock, $0.001 par value - 10,000 shares authorized, none issued and outstanding
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– | – | ||||||
Common stock, $0.001 par value - 70,000 shares authorized, 23,772 and 23,658 shares issued and outstanding at December 31, 2012 and 2011, respectively
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24 | 24 | ||||||
Additional paid-in capital
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272,336 | 271,220 | ||||||
Common stock warrants
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8,420 | 7,007 | ||||||
Accumulated deficit
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(239,131 | ) | (128,102 | ) | ||||
Accumulated other comprehensive loss
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(36 | ) | (520 | ) | ||||
Total stockholders’ equity
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41,613 | 149,629 | ||||||
Total liabilities and stockholders’ equity
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$ | 81,743 | $ | 184,449 |
Year Ended December 31,
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||||||||
2012
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2011
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(unaudited)
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||||||||
Cash flows from operating activities:
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Net loss
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$ | (111,029 | ) | $ | (14,379 | ) | ||
Less: Loss from discontinued operations
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(17,779 | ) | (2,429 | ) | ||||
Loss from continuing operations
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(93,250 | ) | (11,950 | ) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
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||||||||
Depreciation and amortization
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11,102 | 8,863 | ||||||
Stock-based compensation expense
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1,252 | 984 | ||||||
Non-cash interest expense
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2,002 | 1,024 | ||||||
Deferred income tax (benefit) expense
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(961 | ) | 961 | |||||
Bad debt expense
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410 | 417 | ||||||
Goodwill and other impairment
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82,013 | – | ||||||
Other
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(152 | ) | (275 | ) | ||||
Changes in operating assets and liabilities:
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||||||||
Accounts receivable
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2,253 | (6,691 | ) | |||||
Inventories
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(1,257 | ) | (2,634 | ) | ||||
Prepaid expenses and other assets
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(100 | ) | (1,047 | ) | ||||
Accounts payable
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943 | 4,874 | ||||||
Accrued expenses and other liabilities
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1,602 | (2,697 | ) | |||||
Net cash provided by (used in) operating activities
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5,857 | (8,171 | ) | |||||
Cash flows from investing activities:
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||||||||
Purchases of property and equipment
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(4,033 | ) | (16,843 | ) | ||||
Purchases of bottles, net of disposals
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(1,291 | ) | (2,367 | ) | ||||
Proceeds from the sale of property and equipment
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81 | 25 | ||||||
Business acquisitions
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– | (1,576 | ) | |||||
Additions to and acquisitions of intangible assets
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(663 | ) | (439 | ) | ||||
Net cash used in investing activities
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(5,906 | ) | (21,200 | ) | ||||
Cash flows from financing activities:
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||||||||
Borrowings under prior revolving credit facility
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500 | 36,126 | ||||||
Payments under prior revolving credit facility
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(15,000 | ) | (39,538 | ) | ||||
Borrowings under revolving credit facility
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45,694 | – | ||||||
Payments under revolving credit facility
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(38,617 | ) | – | |||||
Borrowings under term loan
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15,150 | – | ||||||
Note payable and capital lease payments
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(14 | ) | (15 | ) | ||||
Debt issuance costs
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(2,203 | ) | (813 | ) | ||||
Proceeds from sale of common stock, net of issuance costs
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(491 | ) | 39,444 | |||||
Stock option and employee stock purchase activity, net
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39 | 392 | ||||||
Net cash provided by financing activities
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5,058 | 35,596 | ||||||
Net increase in cash
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5,009 | 6,225 | ||||||
Cash, beginning of year
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751 | 443 | ||||||
Effect of exchange rate changes on cash
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9 | (46 | ) | |||||
Cash used in discontinued operations from:
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||||||||
Operating activities
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(5,226 | ) | (2,608 | ) | ||||
Investing activities
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(309 | ) | (3,263 | ) | ||||
Financing activities
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– | – | ||||||
Cash used in discontinued operations
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(5,535 | ) | (5,871 | ) | ||||
Cash, end of period
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$ | 234 | $ | 751 |
Three months ended
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Year ended
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|||||||||||||||
December 31,
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December 31,
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|||||||||||||||
2012
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2011
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2012
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2011
|
|||||||||||||
Loss from continuing operations
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$ | (74,002 | ) | $ | (5,727 | ) | $ | (93,250 | ) | $ | (11,950 | ) | ||||
Depreciation and amortization
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3,173 | 2,457 | 11,102 | 8,863 | ||||||||||||
Interest expense and other, net
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961 | 734 | 4,043 | 1,690 | ||||||||||||
Income tax (benefit) provision
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- | 452 | (961 | ) | 961 | |||||||||||
EBITDA
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(69,868 | ) | (2,084 | ) | (79,066 | ) | (436 | ) | ||||||||
Goodwill and other impairment
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70,525 | - | 82,013 | - | ||||||||||||
Non-cash, stock-based compensation expense
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208 | 326 | 1,252 | 984 | ||||||||||||
Non-recurring and acquisition-related costs
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178 | 924 | 743 | 2,091 | ||||||||||||
Loss (gain) on disposal of assets and other
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70 | 4 | 509 | 315 | ||||||||||||
Adjusted EBITDA
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$ | 1,113 | $ | (830 | ) | $ | 5,451 | $ | 2,954 |