Delaware
|
001-34850
|
30-0278688
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit No.
|
Exhibit Description
|
|||
99.1
|
Press Release dated October 29, 2015.
|
PRIMO WATER CORPORATION
|
|||
Date: October 29, 2015
|
By:
|
/s/ Mark Castaneda
|
|
Name:
|
Mark Castaneda
|
||
Title:
|
Chief Financial Officer
|
Date of Event Reported:
|
Commission File No:
|
|
October 29, 2015
|
001-34850
|
Exhibit No.
|
Exhibit Description
|
||
Press Release dated October 29, 2015.
|
· | Net sales increased 28.4% to a record $33.9 million, exceeding Company guidance |
· | Water segment net sales increased 29.7% to a record $24.5 million driven by the addition of retail locations and by U.S. Exchange same-store sales growth of 11.6% |
· | Dispenser segment net sales increased 25.0% to $9.4 million led by record consumer purchases of 144,000 dispensers, representing an increase of 10.0% |
· | Adjusted EBITDA increased 30.7% to a record high $5.2 million, exceeding Company guidance |
· | EPS from continuing operations of $0.05 per diluted share up from $0.01 per share |
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net sales
|
$
|
33,863
|
$
|
26,374
|
$
|
95,475
|
$
|
76,756
|
||||||||
Operating costs and expenses:
|
||||||||||||||||
Cost of sales
|
24,359
|
18,777
|
70,120
|
56,210
|
||||||||||||
Selling, general and administrative expenses
|
4,981
|
4,089
|
13,991
|
12,348
|
||||||||||||
Non-recurring costs
|
53
|
54
|
109
|
2,773
|
||||||||||||
Depreciation and amortization
|
2,371
|
2,593
|
7,424
|
8,094
|
||||||||||||
Loss on disposal and impairment of property andequipment
|
266
|
58
|
417
|
1,081
|
||||||||||||
Total operating costs and expenses
|
32,030
|
25,571
|
92,061
|
80,506
|
||||||||||||
Income (loss) from operations
|
1,833
|
803
|
3,414
|
(3,750
|
)
|
|||||||||||
Interest expense, net
|
491
|
537
|
1,514
|
5,790
|
||||||||||||
Income (loss) from continuing operations
|
1,342
|
266
|
1,900
|
(9,540
|
)
|
|||||||||||
Loss from discontinued operations
|
(18
|
)
|
(49
|
)
|
(87
|
)
|
(401
|
)
|
||||||||
Net income (loss)
|
$
|
1,324
|
$
|
217
|
$
|
1,813
|
$
|
(9,941
|
)
|
|||||||
Basic earnings (loss) per common share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$
|
0.05
|
$
|
0.01
|
$
|
0.08
|
$
|
(0.39
|
)
|
|||||||
Loss from discontinued operations
|
(0.00
|
)
|
(0.00
|
)
|
(0.01
|
)
|
(0.02
|
)
|
||||||||
Net income (loss)
|
$
|
0.05
|
$
|
0.01
|
$
|
0.07
|
$
|
(0.41
|
)
|
|||||||
Diluted earnings (loss) per common share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$
|
0.05
|
$
|
0.01
|
$
|
0.07
|
$
|
(0.39
|
)
|
|||||||
Loss from discontinued operations
|
(0.00
|
)
|
(0.00
|
)
|
(0.00
|
)
|
(0.02
|
)
|
||||||||
Net income (loss)
|
$
|
0.05
|
$
|
0.01
|
$
|
0.07
|
$
|
(0.41
|
)
|
|||||||
Weighted average shares used in computing earnings (loss) per share | ||||||||||||||||
Basic
|
25,295
|
24,457
|
24,992
|
24,257
|
||||||||||||
Diluted
|
26,680
|
25,809
|
26,508
|
24,257
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Segment net sales
|
||||||||||||||||
Water
|
$
|
24,469
|
$
|
18,860
|
$
|
67,239
|
$
|
51,851
|
||||||||
Dispensers
|
9,394
|
7,514
|
28,236
|
24,905
|
||||||||||||
Total net sales
|
$
|
33,863
|
$
|
26,374
|
$
|
95,475
|
$
|
76,756
|
||||||||
Segment income (loss) from operations
|
||||||||||||||||
Water
|
8,047
|
6,279
|
21,170
|
16,640
|
||||||||||||
Dispensers
|
503
|
319
|
1,427
|
1,049
|
||||||||||||
Corporate
|
(4,027
|
)
|
(3,090
|
)
|
(11,233
|
)
|
(9,491
|
)
|
||||||||
Non-recurring costs
|
(53
|
)
|
(54
|
)
|
(109
|
)
|
(2,773
|
)
|
||||||||
Depreciation and amortization
|
(2,371
|
)
|
(2,593
|
)
|
(7,424
|
)
|
(8,094
|
)
|
||||||||
Loss on disposal and impairment of property and equipment
|
(266
|
)
|
(58
|
)
|
(417
|
)
|
(1,081
|
)
|
||||||||
$
|
1,833
|
$
|
803
|
$
|
3,414
|
$
|
(3,750
|
)
|
September 30,
2015 |
December 31,
2014 |
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,565
|
$
|
495
|
||||
Accounts receivable, net
|
10,288
|
9,010
|
||||||
Inventories
|
8,334
|
6,826
|
||||||
Prepaid expenses and other current assets
|
1,076
|
1,279
|
||||||
Total current assets
|
21,263
|
17,610
|
||||||
Bottles, net
|
3,660
|
3,574
|
||||||
Property and equipment, net
|
32,600
|
34,235
|
||||||
Intangible assets, net
|
8,370
|
9,452
|
||||||
Other assets
|
785
|
877
|
||||||
Total assets
|
$
|
66,678
|
$
|
65,748
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
13,290
|
$
|
12,499
|
||||
Accrued expenses and other current liabilities
|
4,109
|
4,343
|
||||||
Current portion of capital leases and notes payable
|
162
|
106
|
||||||
Total current liabilities
|
17,561
|
16,948
|
||||||
Long-term debt, capital leases and notes payable, net of current portion
|
21,318
|
24,210
|
||||||
Liabilities of disposal group, net of current portion, and other long-term liabilities
|
2,282
|
2,316
|
||||||
Total liabilities
|
41,161
|
43,474
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Preferred stock, $0.001 par value - 10,000 shares authorized,none issued and outstanding
|
–
|
–
|
||||||
Common stock, $0.001 par value - 70,000 shares authorized, 25,694 and 24,642 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively
|
26
|
25
|
||||||
Additional paid-in capital
|
280,708
|
277,708
|
||||||
Common stock warrants
|
7,593
|
8,659
|
||||||
Accumulated deficit
|
(261,491
|
)
|
(263,304
|
)
|
||||
Accumulated other comprehensive loss
|
(1,319
|
)
|
(814
|
)
|
||||
Total stockholders’ equity
|
25,517
|
22,274
|
||||||
Total liabilities and stockholders’ equity
|
$
|
66,678
|
$
|
65,748
|
Nine months ended September 30,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
1,813
|
$
|
(9,941
|
)
|
|||
Less: Loss from discontinued operations
|
(87
|
)
|
(401
|
)
|
||||
Income (loss) from continuing operations
|
1,900
|
(9,540
|
)
|
|||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
7,424
|
8,094
|
||||||
Loss on disposal and impairment of property and equipment
|
417
|
1,081
|
||||||
Stock-based compensation expense
|
1,851
|
1,364
|
||||||
Non-cash interest expense
|
83
|
2,744
|
||||||
Issuance of DS Services' common stock warrant
|
–
|
589
|
||||||
Other
|
358
|
(162
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(1,492
|
)
|
(1,074
|
)
|
||||
Inventories
|
(1,534
|
)
|
(1,224
|
)
|
||||
Prepaid expenses and other assets
|
196
|
(87
|
)
|
|||||
Accounts payable
|
861
|
882
|
||||||
Accrued expenses and other liabilities
|
(89
|
)
|
466
|
|||||
Net cash provided by operating activities
|
9,975
|
3,133
|
||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(3,701
|
)
|
(3,817
|
)
|
||||
Purchases of bottles, net of disposals
|
(1,869
|
)
|
(1,993
|
)
|
||||
Proceeds from the sale of property and equipment
|
58
|
572
|
||||||
Additions to and acquisitions of intangible assets
|
(12
|
)
|
(30
|
)
|
||||
Net cash used in investing activities
|
(5,524
|
)
|
(5,268
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Borrowings under Revolving Credit Facilities
|
20,600
|
40,553
|
||||||
Payments under Revolving Credit Facilities
|
(23,600
|
)
|
(36,198
|
)
|
||||
Borrowings under Term loans
|
–
|
22,500
|
||||||
Payments under Term loans
|
–
|
(23,499
|
)
|
|||||
Note payable and capital lease payments
|
(155
|
)
|
(113
|
)
|
||||
Stock option and employee stock purchase activity, net
|
74
|
119
|
||||||
Debt issuance costs and other
|
–
|
(625
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(3,081
|
)
|
2,737
|
|||||
Cash used in operating activities of discontinued operations
|
(129
|
)
|
(231
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(171
|
)
|
(58
|
)
|
||||
Net increase in cash and cash equivalents
|
1,070
|
313
|
||||||
Cash and cash equivalents, beginning of year
|
495
|
394
|
||||||
Cash and cash equivalents, end of period
|
$
|
1,565
|
$
|
707
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Income (loss) from continuing operations
|
$
|
1,342
|
$
|
266
|
$
|
1,900
|
$
|
(9,540
|
)
|
|||||||
Depreciation and amortization
|
2,371
|
2,593
|
7,424
|
8,094
|
||||||||||||
Interest expense, net
|
491
|
537
|
1,514
|
5,790
|
||||||||||||
EBITDA
|
4,204
|
3,396
|
10,838
|
4,344
|
||||||||||||
Non-cash, stock-based compensation expense
|
676
|
467
|
1,851
|
1,364
|
||||||||||||
Non-recurring costs
|
53
|
54
|
109
|
2,773
|
||||||||||||
Loss on disposal and impairment of property and equipment and other
|
306
|
92
|
537
|
1,199
|
||||||||||||
Adjusted EBITDA
|
$
|
5,239
|
$
|
4,009
|
$
|
13,335
|
$
|
9,680
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Income (loss) from continuing operations
|
$
|
1,342
|
$
|
266
|
$
|
1,900
|
$
|
(9,540
|
)
|
|||||||
Non-cash, stock-based compensation expense
|
676
|
467
|
1,851
|
1,364
|
||||||||||||
Non-recurring costs
|
53
|
54
|
109
|
2,773
|
||||||||||||
Loss on disposal and impairment of property and equipment
|
266
|
58
|
417
|
1,081
|
||||||||||||
Debt refinancing costs
|
–
|
–
|
–
|
2,848
|
||||||||||||
Pro forma effect of full income tax (expense) benefit
|
(888
|
)
|
(321
|
)
|
(1,625
|
)
|
560
|
|||||||||
Pro forma fully taxed net income (loss) from continuing operations
|
$
|
1,449
|
$
|
524
|
$
|
2,652
|
$
|
(914
|
)
|
|||||||
Pro forma fully taxed earnings (loss) from continuing operations per share:
|
||||||||||||||||
Basic
|
$
|
0.06
|
$
|
0.02
|
$
|
0.11
|
$
|
(0.04
|
)
|
|||||||
Diluted
|
$
|
0.05
|
$
|
0.02
|
$
|
0.10
|
$
|
(0.04
|
)
|
|||||||
Weighted average shares used in computing earnings (loss) per share:
|
||||||||||||||||
Basic
|
25,295
|
24,457
|
24,992
|
24,257
|
||||||||||||
Diluted
|
26,680
|
25,809
|
26,508
|
24,257
|