Fintech PR
Primo Water Reports Full-Year And Fourth Quarter 2023 Results
- Reports strong year-over-year growth in Revenue, Net Income, Adjusted EBITDA, Margins and Adjusted Free Cash Flow
- Completes previously announced transaction to sell significant portion of its International businesses for $575 million
- Successfully executes leadership transition and welcomes new CEO Robbert Rietbroek
- Issues first quarter and full year 2024 Revenue, Adjusted EBITDA and Free Cash Flow guidance*
- Declares quarterly dividend of $0.09 per common share, a 13% increase over last year
TAMPA, Fla., Feb. 22, 2024 /PRNewswire/ — Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the “Company” or “Primo Water“), a leading provider of sustainable drinking water solutions in North America, today announced its results for the full year and fourth quarter ended December 30, 2023.
“I am pleased with our performance, as our associates provided excellent service to our customers and strong financial results for our shareholders. Our full-year 2023 results exceeded the midpoint of our guidance for revenue, adjusted EBITDA and adjusted free cash flow for the combined continuing and discontinued operations,” said Robbert Rietbroek, Chief Executive Officer.
Mr. Rietbroek continued, “Given the strength of our businesses, we expect our first quarter 2024 outlook from continuing operations for revenue to be between $435 million and $445 million and adjusted EBITDA to be between $85 million and $91 million. Full year 2024 outlook from continuing operations for revenue is forecasted to be between $1.84 billion and $1.88 billion and Adjusted EBITDA to be between $402 million and $422 million. Full-year 2024 Adjusted Free Cash Flow from continuing operations is forecasted to be between $170 million and $180 million. These forecasts reflect the successful execution of the previously announced transaction to sell a significant portion of our international businesses. We intend to use the gross proceeds of $575 million from the sale to pursue growth, both organically and through tuck-in M&A, reduce leverage, and return capital to shareholders via share repurchases and dividends. As we move through 2024, we will sell the remainder of the international businesses, further improving our balance sheet and North American focus as we execute our vision and effectively deploy capital.”
“As the new CEO of Primo Water, I am excited to lead this premier, North American-focused, pure-play water company. Since joining in January, I have been engaging with our stakeholders and learning more about our company’s assets, resources and practices. We have a strong platform for growth with a unique value proposition with our bulk offerings in the large and growing water market, which gives me confidence in our future,” said Mr. Rietbroek.
|
*Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures including “Adjusted EBITDA,” “Adjusted Free Cash Flow” and certain other non-GAAP financial measures included in this press release. Primo Water provides guidance for Adjusted EBITDA and Adjusted Free Cash Flow on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including restructuring costs and restructuring-related impairment charges, acquisition/divestiture related costs, gains or losses on the sale of businesses or other assets, and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company’s future GAAP financial results. For more information, please see the paragraph titled “Non-GAAP Measures” in this press release. |
FISCAL 2023 HIGHLIGHTS – CONTINUING OPERATIONS
- Revenue from continuing operations increased 5% to $1.8 billion compared to $1.7 billion driven by revenue growth of 8% in Water Direct / Water Exchange and 18% in Water Refill / Water Filtration, offset primarily by the exit from the single-use retail bottled water business in North America and the exit from our Russia business.
- Gross margin from continuing operations increased 400 bps to 64.2% compared to 60.2%.
- Reported net income from continuing operations and reported net income per diluted share were $64 million and $0.40, respectively, compared to reported net income from continuing operations and net income per diluted share of $59 million and $0.36, respectively. Adjusted net income from continuing operations and adjusted net income per diluted share were $100 million and $0.62, respectively, compared to $87 million and $0.54, respectively.
- Adjusted EBITDA from continuing operations increased 11% to $381 million and Adjusted EBITDA margin increased 120 bps to a record 21.5%.
(Unless stated otherwise, all fourth quarter 2023 comparisons are relative to the fourth quarter of 2022 and all fiscal year 2023 comparisons are relative to fiscal year 2022; all information is in U.S. dollars and, unless stated otherwise, is on a continuing operations basis. Non-GAAP reconciliations presented on the exhibits to this press release.
|
For the Fiscal Year Ended |
|||||
|
(USD $M unless otherwise noted) |
December |
December |
Y/Y Change  |
||
|
Revenue, net |
$ 1,771.8 |
$ 1,693.2 |
5 % |
||
|
Net income from continuing operations |
$ 63.8 |
$ 58.7 |
$ 5.1 |
||
|
Net income from continuing operations |
$ 0.40 |
$ 0.36 |
$ 0.04 |
||
|
Adjusted net income from continuing |
$ 99.8 |
$ 86.8 |
$ 13.0 |
||
|
Adjusted net income from continuing |
$ 0.62 |
$ 0.54 |
$ 0.08 |
||
|
Adjusted EBITDA |
$ 380.7 |
$ 343.8 |
11 % |
||
|
Adjusted EBITDA margin % |
21.5 % |
20.3 % |
120 bps |
||
OUTLOOK
Primo Water is targeting the following results from continuing operations for the first quarter and full-year 2024:
|
Q1 2024 Range |
FY 2024 Range |
|||
|
($ in millions) |
Low |
High |
Low |
High |
|
Revenue |
$435 |
$445 |
$1,840 |
$1,880 |
|
Adjusted EBITDA |
$85 |
$91 |
$402 |
$422 |
|
Cash Taxes |
$30 |
$40 |
||
|
Cash Interest |
$30 |
$50 |
||
|
Cap-Ex |
~ 7% of Revenue + $22.5M Strategic |
|||
|
Adj. Free Cash Flow |
$170 |
$180 |
||
FOURTH QUARTER 2023 RESULTS CONFERENCE CALL
Primo Water will host a conference call, to be simultaneously webcast, on Thursday, February 22, 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:
North America: (888) 664-6392
International: (416) 764-8659
Conference ID: 60390249
This is a live, listen-only dial-in telephone line.
A slide presentation (including certain additional non-GAAP comparative measures for 2023, 2022 and 2021 on a continuing operations basis) and live audio webcast will be available through Primo Water’s website at https://www.primowatercorp.com. The earnings conference call will be recorded and archived for playback on the investor relations section of the website for a period of two weeks following the event.
FISCAL YEAR PERFORMANCE – CONTINUING OPERATIONS
- Revenue increased 5% to $1,772 million compared to $1,693 million driven by revenue growth of 8% in Water Direct / Water Exchange and 18% 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 Fiscal Year Ended |
|||||||
|
(USD $M unless otherwise noted) |
December |
December |
Change |
% Change |
|||
|
Revenue, net |
|||||||
|
Water Direct/Water Exchange |
$ 1,345.3 |
$ 1,250.2 |
$ 95.1 |
8 % |
|||
|
Water Refill/Water Filtration |
226.9 |
192.0 |
$ 34.9 |
18 % |
|||
|
Other Water |
51.9 |
73.8 |
$ (21.9) |
(30) % |
|||
|
Water Dispensers |
57.5 |
70.5 |
$ (13.0) |
(18) % |
|||
|
Other |
90.2 |
106.7 |
$ (16.5) |
(15) % |
|||
|
Revenue, net as reported |
$ 1,771.8 |
$ 1,693.2 |
$ 78.6 |
5 % |
|||
|
Foreign exchange impact |
2.4 |
— |
2.4 |
n/a |
|||
|
Revenue excluding foreign exchange |
$ 1,774.2 |
$ 1,693.2 |
$ 81.0 |
5 % |
|||
- Gross profit increased 12% to $1,137 million compared to $1,019 million. Gross margin increased 400 bps to 64.2% compared to 60.2%, driven by pricing initiatives, increased demand and operating efficiencies.
- SG&A expenses increased 10% to $976 million compared to $884 million. The increase was driven by higher selling and operating costs including delivery commissions that supported volume and revenue growth.
- Reported net income from continuing operations and net income per diluted share were $64 million and $0.40, respectively, compared to reported net income from continuing operations and net income per diluted share of $59 million and $0.36, respectively. Adjusted net income from continuing operations and adjusted net income per diluted share were $100 million and $0.62, respectively, compared to $87 million and $0.54, respectively.
- Adjusted EBITDA increased 11% to $381 million compared to $344 million, driven primarily by pricing initiatives, customer demand and operating efficiencies. Adjusted EBITDA margin was 21.5% for the year, compared to 20.3%.
- Net cash provided by operating activities from continuing operations of $289 million, less $147 million of capital expenditures and additions to intangible assets, resulted in $142 million of free cash flow, or $158 million of adjusted free cash flow (adjusting for the items set forth on Exhibit 7), compared to adjusted free cash flow of $85 million in the prior year.
FOURTH QUARTER PERFORMANCE – CONTINUING OPERATIONS
|
For the Three Months Ended |
|||||
|
(in millions of U.S. dollars, except per share |
December |
December |
Y/Y Change |
||
|
Revenue, net |
$ 438.7 |
$ 405.1 |
8 % |
||
|
Net income from continuing operations |
$ 13.3 |
$ 34.8 |
$ (21.5) |
||
|
Net income from continuing operations |
$ 0.08 |
$ 0.22 |
$ (0.14) |
||
|
Adjusted net income from continuing |
$ 18.6 |
$ 20.6 |
$ (2.0) |
||
|
Adjusted net income from continuing |
$ 0.12 |
$ 0.13 |
$ (0.01) |
||
|
Adjusted EBITDA |
$ 94.9 |
$ 88.6 |
7 % |
||
|
Adjusted EBITDA margin % |
21.6 % |
21.9 % |
-30 bps |
||
- Revenue increased 8% to $439 million compared to $405 million in the prior quarter. The increase was driven by revenue growth of 8% in Water Direct / Water Exchange and 15% 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 |
|||||||
|
(USD $M unless otherwise noted) |
December |
December |
Change |
% Change |
|||
|
Revenue, net |
|||||||
|
Water Direct/Water Exchange |
$ 333.8 |
$ 309.3 |
$ 24.5 |
8 % |
|||
|
Water Refill/Water Filtration |
57.3 |
49.9 |
$ 7.4 |
15 % |
|||
|
Other Water |
15.1 |
8.0 |
$ 7.1 |
89 % |
|||
|
Water Dispensers |
11.6 |
14.1 |
$ (2.5) |
(18) % |
|||
|
Other |
20.9 |
23.8 |
$ (2.9) |
(12) % |
|||
|
Revenue, net as reported |
$ 438.7 |
$ 405.1 |
$ 33.6 |
8 % |
|||
|
Foreign exchange impact |
0.1 |
— |
0.1 |
n/a |
|||
|
Revenue excluding foreign exchange |
$ 438.8 |
$ 405.1 |
$ 33.7 |
8 % |
|||
- Gross profit increased 14% to $284 million compared to $249 million. Gross margin increased 330 bps to 64.7% compared to 61.4%, driven by pricing initiatives, increased demand and operating efficiencies.
- SG&A expenses increased 13% to $250 million compared to $221 million. The increase was driven by higher selling and operating costs including delivery commissions that supported volume and revenue growth.
- Reported net income from continuing operations and net income per diluted share were $13 million and $0.08, respectively, compared to reported net income from continuing operations and net income per diluted share of $35 million and $0.22, respectively. Adjusted net income and adjusted net income per diluted share were $19 million and $0.12, respectively, compared to $21 million and $0.13 in the prior year.
- Adjusted EBITDA increased 7% to $95 million compared to $89 million, driven primarily by pricing initiatives, customer demand and effective expense management. Adjusted EBITDA margin was 21.6% for the quarter, compared to 21.9%.
- Net cash provided by operating activities from continuing operations of $67 million, less $38 million of capital expenditures and additions to intangible assets, resulted in $29 million of free cash flow, or $37 million of adjusted free cash flow (adjusting for the items set forth on Exhibit 7), compared to adjusted free cash flow of $31 million in the prior year.
QUARTERLY DIVIDEND
Primo Water announced that its Board of Directors declared a dividend of US$0.09 per share on common shares, payable in cash on March 25, 2024 to shareowners of record at the close of business on March 8, 2024.
SHARE REPURCHASE PROGRAM
During 2023, Primo Water repurchased approximately 1.4 million common shares for approximately $21 million. Effective upon the closing of the sale of a significant portion of Primo Water’s International business, the share repurchase authorization was increased from $50 million to $75 million. Under the program, the Company’s common shares may be repurchased periodically in open market or privately negotiated transactions.
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 Primo Water’s common shares, general market and economic conditions, applicable law and other requirements, and other business considerations, provided however that the price per common share will not exceed the market price as at the date of acquisition (plus reasonable brokerage fees and commissions) in accordance with applicable securities laws and exchange rules.
ABOUT PRIMO WATER CORPORATION
Primo Water is a leading North America-focused pure-play water solutions provider that operates largely under a recurring revenue model in the large format water category (defined as 3 gallons or greater). This business strategy is commonly referred to as “razor-razorblade” because the initial sale of a product creates a base of users who frequently purchase complementary consumable products. The razor in Primo Water’s revenue model is its industry leading line-up of innovative water dispensers, which are sold through approximately 10,900 retail locations and online at various price points. The dispensers help increase household and business penetration which drives recurring purchases of Primo Water’s razorblade offering or water solutions. Primo Water’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo Water delivers sustainable hydration solutions direct to customers, whether at home or to businesses. Through its Water Exchange business, customers visit retail locations and purchase a pre-filled bottle of water. Once consumed, empty bottles are exchanged at our recycling center displays, which provide a ticket that offers a discount toward the purchase of a new bottle. Water Exchange is available in approximately 17,500 retail locations. Through its Water Refill business, customers refill empty bottles at approximately 23,500 self-service refill drinking water stations. Primo Water also offers water filtration units across North America.
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 North America which ensures strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection.
Primo Water is headquartered in Tampa, Florida (USA). For more information, visit www.primowatercorp.com.
Non-GAAP Measures
To supplement its reporting of financial measures determined in accordance with U.S. GAAP (Generally Accepted Accounting Principles), Primo Water utilizes certain non-GAAP financial measures. Primo Water utilizes Adjusted net income (loss), Adjusted net income (loss) per diluted share, Adjusted EBITDA and Adjusted EBITDA margin to separate the impact of certain items from the underlying business. Because Primo Water uses these adjusted financial results in the management of its business, management believes this supplemental information is useful to investors for their independent evaluation and understanding of Primo Water’s underlying business performance and the performance of its management. Additionally, Primo Water supplements its reporting of net cash provided by (used in) operating activities from continuing operations determined in accordance with GAAP by excluding additions to property, plant and equipment and additions to intangible assets to present free cash flow, and by excluding the items identified on the exhibits hereto to present adjusted free cash flow, which management believes provides useful information to investors in assessing our performance, comparing Primo Water’s performance to the performance of the Company’s peer group and assessing the Company’s ability to service debt and finance strategic opportunities, which include investing in Primo Water’s business, making strategic acquisitions, paying dividends, and strengthening the balance sheet. With respect to the Company’s expectations of its future performance, the Company’s reconciliations of Q1 2024 and full-year 2024 Adjusted EBITDA and 2024 adjusted free cash flow guidance are not available, as the Company is unable to quantify certain amounts to the degree of precision that would be required in the relevant GAAP measures without unreasonable effort. These items include restructuring costs and restructuring-related impairment charges, acquisition/divestiture related costs, gains or losses on the sale of businesses or other assets, and the income tax effects of these items and/or other income tax-related events.. These items depend on highly variable factors and any such reconciliations would imply a degree of precision that would be confusing or misleading to investors. Primo Water expects the variability of these factors to have a significant, and potentially unpredictable, impact on the Company’s future GAAP financial results. The non-GAAP financial measures described above are in addition to, and not meant to be considered superior to, or a substitute for, Primo Water’s financial statements prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this earnings announcement reflect management’s judgment of particular items, and may be different from, and therefore may not be comparable to, similarly titled measures reported by other companies.
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 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 Q1 and full-year 2024 revenue, Adjusted EBITDA and Adjusted Free Cash Flow), 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: financial condition and results of operations; Primo Water’s ability to compete successfully in the markets in which it operates; 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 supply chain disruptions and cost increases related to inflation; Primo Water’s ability to manage its operations successfully; currency fluctuations that adversely affect the exchange between currencies including the U.S. dollar, the British pound sterling, the Euro and the Canadian dollar; the impact on Primo Water’s financial results from uncertainty in the financial markets and other adverse changes in general economic conditions, including inflation and interest rates; any disruption to production at Primo Water’s manufacturing facilities; Primo Water’s ability to maintain access to its water sources; the impact of climate change on Primo Water’s business; Primo Water’s ability to protect its intellectual property; the seasonal nature of Primo Water’s business and the effect of adverse weather conditions; the impact of national, regional and global events, including those of a political, economic, business and competitive nature, such as the Russia/Ukraine war or the Israel/Hamas war; the impact of a pandemic, such as COVID-19, related government actions and Primo Water’s strategy in response thereto on our business; Primo Water’s ability to fully realize the potential benefit of the transaction or other strategic opportunities that it pursues; Primo Water’s ability to realize cost synergies of its acquisitions due to integration difficulties and other challenges; Primo Water’s exposure to intangible asset risk; Primo Water’s ability to meet its obligations under its debt agreements, and risks of further increases to its indebtedness; Primo Water’s ability to maintain compliance with the covenants and conditions under its debt agreements; fluctuations in interest rates, which could increase Primo Water’s borrowing costs; Primo Water’s ability to recruit, retain and integrate new management; Primo Water’s ability to renew its collective bargaining agreements from time to time on satisfactory terms; compliance with product health and safety standards; liability for injury or illness caused by the consumption of contaminated products; liability and damage to Primo Water’s reputation as a result of litigation or legal proceedings; changes in the legal and regulatory environment in which Primo Water operates; Primo Water’s ability to adequately address the challenges and risks associated with its international operations and address difficulties in complying with laws and regulations including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010; the impact on Primo Water’s tax obligations and effective tax rate arising from changes in local tax laws or countries adopting more aggressive interpretations of tax laws; disruptions in Primo Water’s information systems; Primo Water’s ability to securely maintain its customers’ confidential or credit card information, or other private data relating to Primo Water’s employees or the Company; Primo Water’s ability to maintain its quarterly dividend; or credit rating changes.
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 U.S. dollars, except share and per share amounts, U.S. GAAP) |
|||||||
|
Unaudited |
|||||||
|
For the Three Months Ended |
For the Fiscal Year Ended |
||||||
|
December 30, |
December 31, |
December 30, |
December 31, |
||||
|
Revenue, net |
$ 438.7 |
$ 405.1 |
$ 1,771.8 |
$ 1,693.2 |
|||
|
Cost of sales |
154.8 |
156.4 |
634.8 |
674.0 |
|||
|
Gross profit |
283.9 |
248.7 |
1,137.0 |
1,019.2 |
|||
|
Selling, general and administrative expenses |
250.0 |
221.3 |
976.0 |
883.8 |
|||
|
Loss on disposal of property, plant and equipment, net |
5.3 |
3.3 |
9.1 |
7.4 |
|||
|
Acquisition and integration expenses |
3.5 |
2.6 |
9.5 |
12.1 |
|||
|
Impairment charges |
— |
— |
— |
11.2 |
|||
|
Gain on sale of property |
(15.7) |
(38.8) |
(21.0) |
(38.8) |
|||
|
Operating income |
40.8 |
60.3 |
163.4 |
143.5 |
|||
|
Other expense (income), net |
4.9 |
(2.2) |
1.2 |
(2.5) |
|||
|
Interest expense, net |
16.6 |
18.2 |
71.4 |
67.8 |
|||
|
Income from continuing operations before income taxes |
19.3 |
44.3 |
90.8 |
78.2 |
|||
|
Income tax expense |
6.0 |
9.5 |
27.0 |
19.5 |
|||
|
Net income from continuing operations |
$ 13.3 |
$ 34.8 |
$ 63.8 |
$ 58.7 |
|||
|
Net income (loss) from discontinued operations, net of income |
164.3 |
22.7 |
174.3 |
(29.1) |
|||
|
Net income |
$ 177.6 |
$ 57.5 |
$ 238.1 |
$ 29.6 |
|||
|
Net income (loss) per common share |
|||||||
|
Basic: |
|||||||
|
Continuing operations |
$ 0.08 |
$ 0.22 |
$ 0.40 |
$ 0.36 |
|||
|
Discontinued operations |
$ 1.03 |
$ 0.14 |
$ 1.09 |
$ (0.18) |
|||
|
Net income |
$ 1.11 |
$ 0.36 |
$ 1.49 |
$ 0.18 |
|||
|
Diluted: |
|||||||
|
Continuing operations |
$ 0.08 |
$ 0.22 |
$ 0.40 |
$ 0.36 |
|||
|
Discontinued operations |
$ 1.03 |
$ 0.14 |
$ 1.08 |
$ (0.18) |
|||
|
Net income |
$ 1.11 |
$ 0.36 |
$ 1.48 |
$ 0.18 |
|||
|
Weighted-average common shares outstanding (in thousands) |
|||||||
|
Basic |
159,471 |
159,857 |
159,452 |
160,763 |
|||
|
Diluted |
160,523 |
161,061 |
160,619 |
161,885 |
|||
|
PRIMO WATER CORPORATION |
EXHIBIT 2 |
||
|
CONSOLIDATED BALANCE SHEETS |
|||
|
(in millions of U.S. dollars, except share amounts, U.S. GAAP) |
|||
|
Unaudited |
|||
|
December 30, 2023 |
December 31, 2022 |
||
|
ASSETS |
|||
|
Current assets |
|||
|
Cash and cash equivalents |
$ 507.9 |
$ 78.8 |
|
|
Accounts receivable, net of allowance of $12.7 ($12.1 as of December 31, 2022) |
156.0 |
170.7 |
|
|
Inventories |
47.3 |
65.3 |
|
|
Prepaid expenses and other current assets |
26.0 |
35.9 |
|
|
Current assets of discontinued operations |
128.7 |
187.3 |
|
|
Total current assets |
865.9 |
538.0 |
|
|
Property, plant and equipment, net |
556.5 |
549.5 |
|
|
Operating lease right-of-use-assets |
136.0 |
143.2 |
|
|
Goodwill |
1,004.6 |
997.2 |
|
|
Intangible assets, net |
714.2 |
723.8 |
|
|
Other long-term assets, net |
20.2 |
25.9 |
|
|
Long-term assets of discontinued operations |
225.6 |
689.4 |
|
|
Total assets |
$ 3,523.0 |
$ 3,667.0 |
|
|
LIABILITIES AND EQUITY |
|||
|
Current liabilities |
|||
|
Short-term borrowings |
$ — |
$ 205.8 |
|
|
Current maturities of long-term debt |
14.2 |
10.9 |
|
|
Accounts payable and accrued liabilities |
276.4 |
282.6 |
|
|
Current operating lease obligations |
25.6 |
26.6 |
|
|
Current liabilities of discontinued operations |
109.9 |
164.7 |
|
|
Total current liabilities |
426.1 |
690.6 |
|
|
Long-term debt |
1,270.8 |
1,252.3 |
|
|
Operating lease obligations |
124.0 |
127.6 |
|
|
Deferred tax liabilities |
144.2 |
142.5 |
|
|
Other long-term liabilities |
64.4 |
55.4 |
|
|
Long-term liabilities of discontinued operations |
52.2 |
115.7 |
|
|
Total liabilities |
2,081.7 |
2,384.1 |
|
|
Equity |
|||
|
Common shares, no par value -159,480,638 shares issued (December 31, 2022 – |
1,288.6 |
1,283.2 |
|
|
Additional paid-in-capital |
90.6 |
91.3 |
|
|
Retained earnings (accumulated deficit) |
167.2 |
(9.4) |
|
|
Accumulated other comprehensive loss |
(105.1) |
(82.2) |
|
|
Total Primo Water Corporation equity |
1,441.3 |
1,282.9 |
|
|
Total liabilities and equity |
$ 3,523.0 |
$ 3,667.0 |
|
PRIMO WATER CORPORATION |
EXHIBIT 3 |
||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(in millions of U.S. dollars, U.S. GAAP) |
|||||||
|
Unaudited |
|||||||
|
For the Three Months Ended |
For the Fiscal Year Ended |
||||||
|
December 30, |
December 31, |
December 30, |
December 31, |
||||
|
Cash flows from operating activities: |
|||||||
|
Net income |
$ 177.6 |
$ 57.5 |
$ 238.1 |
$ 29.6 |
|||
|
Net income (loss) from discontinued operations, net of income taxes |
164.3 |
22.7 |
174.3 |
(29.1) |
|||
|
Net income from continuing operations |
$ 13.3 |
$ 34.8 |
$ 63.8 |
$ 58.7 |
|||
|
Adjustments to reconcile net income from continuing operations to |
|||||||
|
Depreciation and amortization |
49.7 |
46.1 |
193.3 |
182.0 |
|||
|
Amortization of financing fees |
0.9 |
0.8 |
3.4 |
3.3 |
|||
|
Share-based compensation expense |
8.0 |
6.7 |
14.1 |
16.4 |
|||
|
Provision for deferred income taxes |
(4.6) |
9.6 |
1.5 |
17.3 |
|||
|
Impairment charges |
— |
— |
— |
11.2 |
|||
|
Loss on disposal of property, plant and equipment, net |
5.3 |
3.3 |
9.1 |
7.4 |
|||
|
Gain on sale of property |
(15.7) |
(38.8) |
(21.0) |
(38.8) |
|||
|
Other non-cash items |
8.7 |
6.0 |
4.1 |
6.0 |
|||
|
Change in operating assets and liabilities, net of acquisitions: |
|||||||
|
Accounts receivable |
19.4 |
16.2 |
15.2 |
(2.6) |
|||
|
Inventories |
2.6 |
2.9 |
7.2 |
(9.4) |
|||
|
Prepaid expenses and other current assets |
(2.7) |
(9.8) |
3.0 |
(4.4) |
|||
|
Other assets |
0.2 |
(3.0) |
(0.7) |
(3.7) |
|||
|
Accounts payable and accrued liabilities and other liabilities |
(18.1) |
(8.4) |
(3.8) |
(5.1) |
|||
|
Net cash provided by operating activities from continuing operations |
67.0 |
66.4 |
289.2 |
238.3 |
|||
|
Cash flows from investing activities of continuing operations: |
|||||||
|
Acquisitions, net of cash received |
(10.0) |
(6.0) |
(34.6) |
(10.3) |
|||
|
Additions to property, plant and equipment |
(35.7) |
(43.5) |
(139.2) |
(162.1) |
|||
|
Additions to intangible assets |
(2.0) |
— |
(8.5) |
(6.7) |
|||
|
Proceeds from sale of property, plant and equipment |
— |
2.0 |
0.4 |
2.7 |
|||
|
Proceeds from sale of property |
22.3 |
50.3 |
31.0 |
50.3 |
|||
|
Other investing activities |
0.8 |
0.7 |
3.6 |
(1.0) |
|||
|
Net cash (used in) provided by investing activities from continuing |
(24.6) |
3.5 |
(147.3) |
(127.1) |
|||
|
Cash flows from financing activities of continuing operations: |
|||||||
|
Payments of long-term debt |
(2.8) |
(3.4) |
(11.5) |
(12.1) |
|||
|
Proceeds from short-term borrowings |
— |
15.0 |
116.0 |
37.0 |
|||
|
Payments on short-term borrowings |
(132.0) |
(51.0) |
(313.0) |
(51.0) |
|||
|
Issuance of common shares |
0.4 |
0.4 |
6.1 |
2.5 |
|||
|
Common shares repurchased and canceled |
(3.6) |
(14.7) |
(26.0) |
(27.7) |
|||
|
Dividends paid to common and preferred shareholders |
(13.1) |
(11.2) |
(51.7) |
(45.4) |
|||
|
Payment of contingent consideration for acquisitions |
(0.2) |
(1.2) |
(1.5) |
(3.5) |
|||
|
Other financing activities |
(1.2) |
8.8 |
(8.8) |
8.8 |
|||
|
Net cash used in financing activities from continuing operations |
(152.5) |
(57.3) |
(290.4) |
(91.4) |
|||
|
Cash flows from discontinued operations: |
|||||||
|
Operating activities of discontinued operations |
24.1 |
32.2 |
61.1 |
43.3 |
|||
|
Investing activities of discontinued operations |
520.7 |
(8.1) |
488.3 |
(54.4) |
|||
|
Financing activities of discontinued operations |
(4.5) |
(12.2) |
4.6 |
(11.4) |
|||
|
Net cash provided by (used in) discontinued operations |
540.3 |
11.9 |
554.0 |
(22.5) |
|||
|
Effect of exchange rate changes on cash |
2.5 |
2.6 |
2.4 |
(3.1) |
|||
|
Net increase (decrease) in cash, cash equivalents and restricted |
432.7 |
27.1 |
407.9 |
(5.8) |
|||
|
Cash and cash equivalents and restricted cash, beginning of |
97.8 |
95.5 |
122.6 |
128.4 |
|||
|
Cash and cash equivalents and restricted cash, end of period |
$ 530.5 |
$ 122.6 |
$ 530.5 |
$ 122.6 |
|||
|
Cash and cash equivalents and restricted cash of discontinued |
22.6 |
43.8 |
22.6 |
43.8 |
|||
|
Cash and cash equivalents and restricted cash of continuing |
$ 507.9 |
$ 78.8 |
$ 507.9 |
$ 78.8 |
|||
|
PRIMO WATER CORPORATION |
EXHIBIT 4 |
|||||
|
SEGMENT INFORMATION |
||||||
|
(in millions of U.S. dollars, U.S. GAAP) |
||||||
|
Unaudited |
||||||
|
For the Three Months Ended December 30, 2023 |
||||||
|
North America |
Other |
Total |
||||
|
Revenue, net |
||||||
|
Water Direct/Water Exchange |
$ 333.8 |
$ — |
$ 333.8 |
|||
|
Water Refill/Water Filtration |
57.3 |
— |
57.3 |
|||
|
Other Water |
15.1 |
— |
15.1 |
|||
|
Water Dispensers |
11.6 |
— |
11.6 |
|||
|
Other |
20.8 |
0.1 |
20.9 |
|||
|
Total |
$ 438.6 |
$ 0.1 |
$ 438.7 |
|||
|
Gross profit |
$ 283.8 |
$ 0.1 |
$ 283.9 |
|||
|
Gross margin % |
64.7 % |
100.0 % |
64.7 % |
|||
|
Selling, general and administrative expenses |
$ 232.5 |
$ 17.5 |
$ 250.0 |
|||
|
SG&A % of revenue |
53.0 % |
NM |
57.0 % |
|||
|
Operating income (loss) |
$ 59.9 |
$ (19.1) |
$ 40.8 |
|||
|
Depreciation and amortization |
$ 49.4 |
$ 0.3 |
$ 49.7 |
|||
|
For the Three Months Ended December 31, 2022 |
||||||
|
North America |
Other |
Total |
||||
|
Revenue, net |
||||||
|
Water Direct/Water Exchange |
$ 309.3 |
$ — |
$ 309.3 |
|||
|
Water Refill/Water Filtration |
49.9 |
— |
49.9 |
|||
|
Other Water |
8.0 |
— |
8.0 |
|||
|
Water Dispensers |
14.1 |
— |
14.1 |
|||
|
Other |
23.7 |
0.1 |
23.8 |
|||
|
Total |
$ 405.0 |
$ 0.1 |
$ 405.1 |
|||
|
Gross profit |
$ 248.6 |
$ 0.1 |
$ 248.7 |
|||
|
Gross margin % |
61.4 % |
100.0 % |
61.4 % |
|||
|
Selling, general and administrative expenses |
$ 206.8 |
$ 14.5 |
$ 221.3 |
|||
|
SG&A % of revenue |
51.1 % |
NM |
54.6 % |
|||
|
Operating income (loss) |
$ 74.5 |
$ (14.2) |
$ 60.3 |
|||
|
Depreciation and amortization |
$ 45.8 |
$ 0.3 |
$ 46.1 |
|||
|
For the Fiscal Year Ended December 30, 2023 |
||||||
|
North America |
Other |
Total |
||||
|
Revenue, net |
||||||
|
Water Direct/Water Exchange |
$ 1,345.3 |
$ — |
$ 1,345.3 |
|||
|
Water Refill/Water Filtration |
226.9 |
— |
226.9 |
|||
|
Other Water |
51.9 |
— |
51.9 |
|||
|
Water Dispensers |
57.5 |
— |
57.5 |
|||
|
Other |
89.6 |
0.6 |
90.2 |
|||
|
Total |
$ 1,771.2 |
$ 0.6 |
$ 1,771.8 |
|||
|
Gross profit |
$ 1,136.4 |
$ 0.6 |
$ 1,137.0 |
|||
|
Gross margin % |
64.2 % |
100.0 % |
64.2 % |
|||
|
Selling, general and administrative expenses |
$ 919.7 |
$ 56.3 |
$ 976.0 |
|||
|
SG&A % of revenue |
51.9 % |
NM |
55.1 % |
|||
|
Operating income (loss) |
$ 222.2 |
$ (58.8) |
$ 163.4 |
|||
|
Depreciation and amortization |
$ 191.9 |
$ 1.4 |
$ 193.3 |
|||
|
For the Fiscal Year Ended December 31, 2022 |
||||||
|
North America |
Other |
Total |
||||
|
Revenue, net |
||||||
|
Water Direct/Water Exchange |
$ 1,242.8 |
$ 7.4 |
$ 1,250.2 |
|||
|
Water Refill/Water Filtration |
192.0 |
— |
192.0 |
|||
|
Other Water |
73.8 |
— |
73.8 |
|||
|
Water Dispensers |
70.5 |
— |
70.5 |
|||
|
Other |
106.5 |
0.2 |
106.7 |
|||
|
Total |
$ 1,685.6 |
$ 7.6 |
$ 1,693.2 |
|||
|
Gross profit |
$ 1,013.5 |
$ 5.7 |
$ 1,019.2 |
|||
|
Gross margin % |
60.1 % |
75.0 % |
60.2 % |
|||
|
Selling, general and administrative expenses |
$ 830.8 |
$ 53.0 |
$ 883.8 |
|||
|
SG&A % of revenue |
49.3 % |
NM |
52.2 % |
|||
|
Operating income (loss) |
$ 203.7 |
$ (60.2) |
$ 143.5 |
|||
|
Depreciation and amortization |
$ 179.6 |
$ 2.4 |
$ 182.0 |
|||
|
PRIMO WATER CORPORATION |
EXHIBIT 5 |
||||
|
SUPPLEMENTARY INFORMATION – NON-GAAP – ANALYSIS OF REVENUE AND GROSS PROFIT BY REPORTING |
|||||
|
(in millions of U.S. dollars, except percentage amounts) |
|||||
|
Unaudited |
|||||
|
For the Three Months Ended December 30, 2023 |
|||||
|
North America |
Other |
Primo |
|||
|
Change in revenue |
$ 33.6 |
$ — |
$ 33.6 |
||
|
Impact of foreign exchange (a) |
0.1 |
— |
0.1 |
||
|
Change excluding foreign exchange |
$ 33.7 |
$ — |
$ 33.7 |
||
|
Percentage change in revenue |
8.3 % |
— % |
8.3 % |
||
|
Percentage change in revenue excluding foreign exchange |
8.3 % |
— % |
8.3 % |
||
|
For the Fiscal Year Ended December 30, 2023 |
|||||
|
North America |
Other |
Primo |
|||
|
Change in revenue |
$ 85.6 |
$ (7.0) |
$ 78.6 |
||
|
Impact of foreign exchange (a) |
2.4 |
— |
2.4 |
||
|
Change excluding foreign exchange |
$ 88.0 |
$ (7.0) |
$ 81.0 |
||
|
Percentage change in revenue |
5.1 % |
(92.1) % |
4.6 % |
||
|
Percentage change in revenue excluding foreign exchange |
5.2 % |
(92.1) % |
4.8 % |
||
|
For the Three Months Ended December 30, 2023 |
|||||
|
North America |
Other |
Primo |
|||
|
Change in gross profit |
$ 35.2 |
$ — |
$ 35.2 |
||
|
Impact of foreign exchange (a) |
0.1 |
— |
0.1 |
||
|
Change excluding foreign exchange |
$ 35.3 |
$ — |
$ 35.3 |
||
|
Percentage change in gross profit |
14.2 % |
— % |
14.2 % |
||
|
Percentage change in gross profit excluding foreign exchange |
14.2 % |
— % |
14.2 % |
||
|
For the Fiscal Year Ended December 30, 2023 |
|||||
|
North America |
Other |
Primo |
|||
|
Change in gross profit |
$ 122.9 |
$ (5.1) |
$ 117.8 |
||
|
Impact of foreign exchange (a) |
1.5 |
— |
1.5 |
||
|
Change excluding foreign exchange |
$ 124.4 |
$ (5.1) |
$ 119.3 |
||
|
Percentage change in gross profit |
12.1 % |
(89.5) % |
11.6 % |
||
|
Percentage change in gross profit excluding foreign exchange |
12.3 % |
(89.5) % |
11.7 % |
||
|
(a) Impact of foreign exchange is the difference between the current period revenue and gross profit translated utilizing the current period average foreign exchange rates less the current period revenue and gross profit translated utilizing the prior period average foreign exchange rates. |
|
PRIMO WATER CORPORATION |
EXHIBIT 6 |
||||||
|
SUPPLEMENTARY INFORMATION – NON-GAAP – EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION |
|||||||
|
(EBITDA) |
|||||||
|
(in millions of U.S. dollars) |
|||||||
|
Unaudited |
|||||||
|
For the Three Months Ended |
For the Fiscal Year Ended |
||||||
|
December 30, 2023 |
December 31, 2022 |
December 30, 2023 |
December 31, 2022 |
||||
|
Net income from continuing operations |
$ 13.3 |
$ 34.8 |
$ 63.8 |
$ 58.7 |
|||
|
Interest expense, net |
16.6 |
18.2 |
71.4 |
67.8 |
|||
|
Income tax expense |
6.0 |
9.5 |
27.0 |
19.5 |
|||
|
Depreciation and amortization |
49.7 |
46.1 |
193.3 |
182.0 |
|||
|
EBITDA |
$ 85.6 |
$ 108.6 |
$ 355.5 |
$ 328.0 |
|||
|
Acquisition and integration costs (a) |
3.5 |
2.6 |
9.5 |
12.1 |
|||
|
Share-based compensation costs (b) |
8.0 |
6.7 |
14.1 |
16.4 |
|||
|
COVID-19 costs (c) |
— |
(0.6) |
— |
(0.6) |
|||
|
Impairment charges (d) |
— |
— |
— |
11.2 |
|||
|
Foreign exchange and other losses (gains), net (e) |
5.8 |
(0.9) |
5.7 |
0.9 |
|||
|
Loss on disposal of property, plant and equipment, net (f) |
5.3 |
3.3 |
9.1 |
7.4 |
|||
|
Gain on sale of business (g) |
— |
(0.3) |
— |
(0.7) |
|||
|
Gain on sale of property (h) |
(15.7) |
(38.8) |
(21.0) |
(38.8) |
|||
|
Other adjustments, net (i) |
2.4 |
8.0 |
7.8 |
7.9 |
|||
|
Adjusted EBITDA |
$ 94.9 |
$ 88.6 |
$ 380.7 |
$ 343.8 |
|||
|
Revenue, net |
$ 438.7 |
$ 405.1 |
$ 1,771.8 |
$ 1,693.2 |
|||
|
Adjusted EBITDA margin % |
21.6 % |
21.9 % |
21.5 % |
20.3 % |
|||
|
For the Three Months Ended |
For the Fiscal Year Ended |
||||||||
|
Location in Consolidated Statements of |
December 30, |
December 31, |
December 30, |
December 31, |
|||||
|
(Unaudited) |
(Unaudited) |
||||||||
|
(a) Acquisition and integration costs |
Acquisition and integration expenses |
$ 3.5 |
$ 2.6 |
$ 9.5 |
$ 12.1 |
||||
|
(b) Share-based compensation costs |
Selling, general and administrative expenses |
8.0 |
6.7 |
14.1 |
16.4 |
||||
|
(c) COVID-19 costs |
Selling, general and administrative expenses |
— |
(0.6) |
— |
(0.6) |
||||
|
(d) Impairment charges |
Impairment charges |
— |
— |
— |
11.2 |
||||
|
(e) Foreign exchange and other losses (gains), net |
Other expense (income), net |
5.8 |
(0.9) |
5.7 |
0.9 |
||||
|
(f) Loss on disposal of property, plant and |
Loss on disposal of property, plant and |
5.3 |
3.3 |
9.1 |
7.4 |
||||
|
(g) Gain on sale of business |
Other expense (income), net |
— |
(0.3) |
— |
(0.7) |
||||
|
(h) Gain on sale of property |
Gain on sale of property |
(15.7) |
(38.8) |
(21.0) |
(38.8) |
||||
|
(i) Other adjustments, net |
Other expense (income), net |
(0.9) |
(0.2) |
(2.3) |
(1.4) |
||||
|
Selling, general and administrative expenses |
3.3 |
8.2 |
10.1 |
9.3 |
|||||
|
PRIMO WATER CORPORATION |
EXHIBIT 7 |
||
|
SUPPLEMENTARY INFORMATION – NON-GAAP – FREE CASH FLOW AND ADJUSTED FREE CASH FLOW |
|||
|
(in millions of U.S. dollars) |
|||
|
Unaudited |
|||
|
For the Three Months Ended |
|||
|
December 30, 2023 |
December 31, 2022 |
||
|
Net cash provided by operating activities from continuing operations |
$ 67.0 |
$ 66.4 |
|
|
Less: Additions to property, plant, and equipment |
(35.7) |
(43.5) |
|
|
Less: Additions to intangible assets |
(2.0) |
— |
|
|
Free Cash Flow |
$ 29.3 |
$ 22.9 |
|
|
Acquisition and integration cash costs |
1.4 |
1.3 |
|
|
Cash taxes paid for property sales |
5.1 |
— |
|
|
COVID-19 related cash costs |
— |
(0.6) |
|
|
Cash costs related to additions to property, plant and equipment for |
0.2 |
0.3 |
|
|
Tariffs refunds related to property, plant, and equipment |
0.7 |
— |
|
|
Deferral of payroll tax related costs – government programs |
— |
7.5 |
|
|
Adjusted Free Cash Flow |
$ 36.7 |
$ 31.4 |
|
|
For the Fiscal Year Ended |
|||
|
December 30, 2023 |
December 31, 2022 |
||
|
Net cash provided by operating activities from continuing operations |
$ 289.2 |
$ 238.3 |
|
|
Less: Additions to property, plant, and equipment |
(139.2) |
(162.1) |
|
|
Less: Additions to intangible assets |
(8.5) |
(6.7) |
|
|
Free Cash Flow |
$ 141.5 |
$ 69.5 |
|
|
Acquisition and integration cash costs |
7.0 |
8.7 |
|
|
Cash taxes paid for property sales |
5.9 |
— |
|
|
COVID-19 related cash costs |
— |
(0.6) |
|
|
Cash costs related to additions to property, plant and equipment for |
0.3 |
0.3 |
|
|
Tariffs refunds related to property, plant, and equipment |
3.1 |
— |
|
|
Deferral of payroll tax related costs – government programs |
— |
7.5 |
|
|
Adjusted Free Cash Flow |
$ 157.8 |
$ 85.4 |
|
|
PRIMO WATER CORPORATION |
EXHIBIT 8 |
||||||
|
SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS |
|||||||
|
(in millions of U.S. dollars, except share amounts) |
|||||||
|
Unaudited |
|||||||
|
For the Three Months Ended |
For the Year Ended |
||||||
|
December 30, 2023 |
December 31, 2022 |
December 30, 2023 |
December 31, 2022 |
||||
|
Net income from continuing operations (as |
$ 13.3 |
$ 34.8 |
$ 63.8 |
$ 58.7 |
|||
|
Adjustments: |
|||||||
|
Amortization expense of customer lists |
7.7 |
7.6 |
30.1 |
31.5 |
|||
|
Acquisition and integration costs |
3.5 |
2.6 |
9.5 |
12.1 |
|||
|
Share-based compensation costs |
8.0 |
6.7 |
14.1 |
16.4 |
|||
|
COVID-19 costs |
— |
(0.6) |
— |
(0.6) |
|||
|
Impairment charges |
— |
— |
— |
11.2 |
|||
|
Foreign exchange and other losses (gains), net |
5.8 |
(0.9) |
5.7 |
0.9 |
|||
|
Gain on sale of business |
— |
(0.3) |
— |
(0.7) |
|||
|
Gain on sale of property |
(15.7) |
(38.8) |
(21.0) |
(38.8) |
|||
|
Other adjustments, net |
2.4 |
8.0 |
7.8 |
7.9 |
|||
|
Tax impact of adjustments (a) |
(6.4) |
1.5 |
(10.2) |
(11.8) |
|||
|
Adjusted net income from continuing operations |
$ 18.6 |
$ 20.6 |
$ 99.8 |
$ 86.8 |
|||
|
Earnings Per Share (as reported) |
|||||||
|
Net income from continuing operations |
$ 13.3 |
$ 34.8 |
$ 63.8 |
$ 58.7 |
|||
|
Basic EPS |
$ 0.08 |
$ 0.22 |
$ 0.40 |
$ 0.36 |
|||
|
Diluted EPS |
$ 0.08 |
$ 0.22 |
$ 0.40 |
$ 0.36 |
|||
|
Weighted average common shares outstanding (in |
|||||||
|
Basic |
159,471 |
159,857 |
159,452 |
160,763 |
|||
|
Diluted |
160,523 |
161,061 |
160,619 |
161,885 |
|||
|
Adjusted Earnings Per Share (Non-GAAP) |
|||||||
|
Adjusted net income from continuing operations |
$ 18.6 |
$ 20.6 |
$ 99.8 |
$ 86.8 |
|||
|
Adjusted diluted EPS (Non-GAAP) |
$ 0.12 |
$ 0.13 |
$ 0.62 |
$ 0.54 |
|||
|
Diluted weighted average common shares outstanding |
160,523 |
161,061 |
160,619 |
161,885 |
|||
|
(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) For the periods presented, the non-GAAP diluted weighted average common shares outstanding equaled the reported diluted weighted average common shares outstanding. |
CONTACT: Jon Kathol, Vice President, Investor Relations, Tel:813-544-8515, [email protected]
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Fintech PR
Lanistar launches new gaming sites in Brazil as secures right to operate pending final approval on its licence
Nexus International buys assets and IP of Lanistar as it divests its legacy business, enabling it to target multi-billion-dollar market
LONDON, Dec. 13, 2024 /PRNewswire/ — Lanistar has achieved a significant milestone by securing one of the first gaming licences awarded by the Brazilian SIGAP – Sistema de Gestão de Apostas (Bet Management System) in what is a transformative move for the business. The business now secured the right to operate in the Brazilian pending licence approval.
Two online platforms (skins) have been launched and are now live including megaposta.com as the business targets one of the fastest growing online gaming markets globally.
Gurhan Kiziloz, Founder, stated: “The global direction of gaming regulators over the last decade has been to replace grey markets with legal, regulated markets. This has been a response to the proliferation of online sports betting and the globalisation of the industry. So we are thrilled to have been able to launch pending the final approval on a licence to operate but to do so in a market which is set for huge growth.”
“Central to this was how we managed the future of the legacy business. As we prepared to enter this market, we took the decision to sell the IP and assets of Lanistar based in the UK, to Nexus International for an undisclosed sum,” continued Kiziloz.
“This cleared the way to divest of our legacy business and enables us to focus 100% on the Brazilian gaming industry. It also enabled us to reinvest the multi-million £ raised in that sale back into the new operation and ensure that we are cashflow positive from the get-go. This is without doubt the most exciting new operation I have launched to date and one that is already reaping rewards.”
Online sports betting in Brazil began in 2018, but the government did not start regulating the activity until this year.
Brazilians spent 68.2 billion reais ($12.2 billion) in the year ending in June on gaming platforms abroad, according to an analysis by lender Itau Unibanco, based on central bank data. That would put it among the world’s top six sports betting markets.
In a drive to regulate the sector, the Normative Ordinance 827 was published in Brazil’s Official Diary of the Union on 21st May 2024, which laid out the requirements for those hoping to secure sports betting and gaming licences in Brazil.
It kicked off an “adjustment period” in which gaming operators active in Brazil had until 31 December 2024 to comply with the regulatory framework for sports betting and iGaming. Companies’ applications submitted within 90 days of Ordinance 827’s release were prioritised for assessment.
Authorised operators have been granted a licence lasting five years, once a BRL30m ($5.9m) fee is paid, and able to offer gambling via three skins.
As with regulations in many other countries, companies must provide documentation proving they are legally qualified to operate in Brazil, including identification and registration forms for controlling entities. They must also submit a declaration of compliance with payments regulations, supported by certification from the Central Bank of Brazil.
“We fully support the drive to regulate the sector and have complied with all the requirements we needed to ensure we were granted an operating licence. Regulation is good for both consumers, who enjoy better, more reliable services and betting companies, who can operate in a transparent predictable market,” concluded Kiziloz.
Notes to editors
About Lanistar
Lanistar was founded in 2019 by entrepreneur Gurhan Kiziloz, whose ambition is to build a fintech unicorn.
Using modern technology and working with industry-leading partners, the Lanistar team has successfully launched its first gaming sites in Brazil and is licensed by SIGAP – Sistema de Gestão de Apostas.
Contact
RICHARD MERRIN
[email protected]
View original content:https://www.prnewswire.co.uk/news-releases/lanistar-launches-new-gaming-sites-in-brazil-as-secures-right-to-operate-pending-final-approval-on-its-licence-302331474.html
Fintech PR
Healthcare Revenue Cycle Management (RCM) Market Surges to USD 658.7 Billion by 2030, Propelled by 24% CAGR – Verified Market Reports®
Verified Market Reports®, a trusted name in market intelligence, is excited to announce the launch of its latest report, “Healthcare Revenue Cycle Management (RCM) Market – Trends, Opportunities, and Growth Forecast, 2024-2030.” This comprehensive analysis equips healthcare providers, technology vendors, and financial decision-makers with actionable insights to navigate the complexities of the RCM landscape.
LEWES, Del., Dec. 13, 2024 /PRNewswire/ — The Global Healthcare Revenue Cycle Management (RCM) Market is projected to grow at a CAGR of 24% from 2024 to 2030, according to a new report published by Verified Market Reports®. The report reveals that the market was valued at USD 305.6 Billion in 2023 and is expected to reach USD 658.7 Billion by the end of the forecast period.
The Healthcare Revenue Cycle Management (RCM) market is driven by the growing adoption of electronic health records (EHR) systems, increasing demand for cost-efficient healthcare services, and regulatory changes that mandate accurate billing and coding. The rise in healthcare expenditures and the shift toward value-based care models further support the market’s expansion.
Additionally, the increasing complexity of billing procedures and the need for timely reimbursements create demand for RCM solutions. However, market restraints include high implementation costs, data privacy concerns, and the complexity of integrating RCM systems with existing infrastructure. Limited skilled workforce and resistance to adopting new technologies in some regions also hinder growth.
Download PDF Brochure: https://www.verifiedmarketreports.com/download-sample/?rid=570362
Browse in-depth TOC on Healthcare Revenue Cycle Management (RCM) Market
202 – Pages
126 – Tables
37 – Figures
Scope of The Report
|
REPORT ATTRIBUTES |
DETAILS |
|
STUDY PERIOD |
2021-2030 |
|
BASE YEAR |
2023 |
|
FORECAST PERIOD |
2024-2030 |
|
HISTORICAL PERIOD |
2021-2022 |
|
UNIT |
Value (USD Billion) |
|
KEY COMPANIES PROFILED |
Epic Systems Corporation, McKesson Corporation, Cerner Corporation, General Electric, Allscripts, Quest Diagnostic, Siemens Healthcare, AdvantEdge Healthcare |
|
SEGMENTS COVERED |
By Type, By Application, By Geography |
|
CUSTOMIZATION SCOPE |
Free report customization (equivalent to up to 4 analyst working days) with purchase. Addition or alteration to country, regional & segment scope |
Global Healthcare Revenue Cycle Management (RCM) Market Overview
Market Drivers Fueling Growth in the Healthcare Revenue Cycle Management (RCM) Market
- Adoption of Advanced Technologies
The increasing implementation of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and automation is driving growth in the Healthcare Revenue Cycle Management (RCM) market. These technologies streamline billing processes, reduce human errors, and enhance decision-making capabilities. By automating routine tasks like coding and claim submission, healthcare providers can focus on more complex issues, resulting in faster reimbursements and improved financial performance. As healthcare organizations continue to embrace these innovations, the demand for RCM solutions is expected to rise significantly. - Regulatory Compliance and Value-Based Care Models
Stringent regulations, such as ICD-10 coding and the Affordable Care Act (ACA), are fueling the demand for RCM solutions to ensure accurate and compliant billing practices. Moreover, the shift towards value-based care, where reimbursement is tied to patient outcomes rather than volume, increases the complexity of revenue cycles. Healthcare organizations must adapt their billing systems to meet new regulatory standards and optimize their revenue through better tracking of patient care data. This need for compliance and optimization is a key driver for the growth of the RCM market. - Rising Healthcare Costs and Financial Pressure
With rising healthcare costs and an increasing volume of insurance claims, healthcare providers face greater financial pressure to streamline their revenue cycle processes. Efficient RCM systems help reduce denials, accelerate payments, and ensure more accurate coding and billing, which is critical to improving cash flow. Healthcare organizations are investing in RCM solutions to mitigate revenue loss due to billing errors, claim rejections, or delayed reimbursements. This financial imperative is a major factor driving the adoption of RCM technologies in hospitals and clinics worldwide.
To Purchase a Comprehensive Report Analysis: https://www.verifiedmarketreports.com/download-sample/?rid=570362
Market Restraints Limiting Expansion in the Healthcare Revenue Cycle Management (RCM) Market
- High Implementation Costs
Implementing advanced healthcare revenue cycle management (RCM) systems often requires substantial upfront investment, which can be a significant deterrent for smaller healthcare providers. Expenses related to software acquisition, hardware upgrades, and training staff to use these systems effectively add to the financial burden. Many providers, particularly in rural or underserved areas, struggle to justify these costs given their limited budgets. This financial strain restricts their ability to adopt new technologies that could improve operational efficiency. Consequently, the high implementation cost remains a key restraint to the broader adoption of RCM systems. - Complex Regulatory Compliance
The healthcare industry is subject to stringent regulatory requirements, which add complexity to the revenue cycle management process. Frequent changes in healthcare policies, such as coding updates, insurance mandates, and compliance standards, demand constant monitoring and adaptation. Navigating these regulatory landscapes requires specialized knowledge and resources, which many healthcare providers lack. Non-compliance can lead to costly penalties and revenue losses, discouraging investment in RCM solutions. This challenge is particularly acute for smaller organizations, limiting their ability to scale and compete effectively in the market. - Data Privacy and Security Concerns
The handling of sensitive patient data in RCM systems raises significant concerns about data privacy and security. Cyberattacks, data breaches, and unauthorized access to patient information can have severe consequences, including legal liabilities and reputational damage. Healthcare providers must invest heavily in cybersecurity measures to safeguard their RCM platforms, further increasing operational costs. The fear of potential breaches and non-compliance with data protection regulations, such as HIPAA in the United States, deters many providers from fully embracing digital RCM solutions. These concerns act as a major restraint in the expansion of the healthcare RCM market.
Geographic Dominance
The Healthcare Revenue Cycle Management (RCM) market demonstrates remarkable geographic diversity, with North America leading due to advanced healthcare infrastructure, widespread adoption of technology, and favorable regulatory frameworks. Europe follows closely, benefiting from robust healthcare systems and increasing investments in digital health solutions. Asia is emerging as a key player, driven by rapid urbanization, expanding healthcare services, and the growing need for efficient billing and coding processes in densely populated countries like China and India. Meanwhile, Africa and other emerging regions are showing significant potential, fueled by improving healthcare infrastructure and initiatives aimed at modernizing financial systems in healthcare.
As global demand for cost-effective and efficient healthcare services grows, these regions are expected to experience accelerated adoption of RCM solutions. Technological advancements and the increasing prevalence of value-based care models are further driving growth across these geographies. Additionally, partnerships between global and local firms are fostering innovation and market penetration. This geographic spread highlights the dynamic nature of the RCM market and its potential for sustained expansion worldwide.
Healthcare Revenue Cycle Management (RCM) Market Key Players Shaping the Future
Major players, including Epic Systems Corporation, McKesson Corporation, Cerner Corporation, General Electric, Allscripts, Quest Diagnostic, Siemens Healthcare, AdvantEdge Healthcare, CareCloud, Acelerartech and more, play a pivotal role in shaping the future of the Healthcare Revenue Cycle Management (RCM) Market. Financial statements, product benchmarking, and SWOT analysis provide valuable insights into the industry’s key players.
Healthcare Revenue Cycle Management (RCM) Market Segment Analysis
Based on the research, Verified Market Reports® has segmented the global Healthcare Revenue Cycle Management (RCM) Market into Type, Application and Geography.
- Healthcare Revenue Cycle Management (RCM) Market, By Type
- On-Premises
- Cloud-Based
- Healthcare Revenue Cycle Management (RCM) Market, By Application
- Hospitals
- Ambulatory Services
- Healthcare Revenue Cycle Management (RCM) Market, By Geography
- North America
- U.S
- Canada
- Mexico
- Europe
- Germany
- France
- U.K
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Rest of Asia Pacific
- ROW
- Middle East & Africa
- Latin America
Browse Related Reports:
Global Healthcare Revenue Cycle Management (RCM) Software Market By Type (Cloud-based, On-premise), By Application (Hospitals, Physician), By Geographic Scope And Forecast
Global Healthcare RCM Outsourcing Market By Type (Pre-intervention, Intervention), By Application (Small/Rural Hospitals, Community Hospitals), By Geographic Scope And Forecast
Global Medical Billing Service Market By Type (On-premise, Cloud Based), By Application (Clinical, Operations), By Geographic Scope And Forecast
Global Medical Patient Financing Market By Type (Equipment and Technology Finance, Working Capital Finance), By Application (Hospitals & Health Systems, Outpatient Imaging Centers), By Geographic Scope And Forecast
Global Healthcare Marketing Services Market By Type (Branding, Reputation Management), By Application (Hospitals, Pharmaceutical Companies), By Geographic Scope And Forecast
About Us
Verified Market Reports® stands at the forefront as a global leader in Research and Consulting, offering unparalleled analytical research solutions that empower organizations with the insights needed for critical business decisions. Celebrating 10+ years of service, Verified Market Reports has been instrumental in providing founders and companies with precise, up-to-date research data.
With a team of 500+ Analysts and subject matter experts, Verified Market Reports leverages internationally recognized research methodologies for data collection and analyses, covering over 15,000 high impact and niche markets. This robust team ensures data integrity and offers insights that are both informative and actionable, tailored to the strategic needs of businesses across various industries.
Verified Market Reports’ domain expertise is recognized across 14 key industries, including Semiconductor & Electronics, Healthcare & Pharmaceuticals, Energy, Technology, Automobiles, Defense, Mining, Manufacturing, Retail, and Agriculture & Food. In-depth market analysis cover over 52 countries, with advanced data collection methods and sophisticated research techniques being utilized. This approach allows for actionable insights to be furnished by seasoned analysts, equipping clients with the essential knowledge necessary for critical revenue decisions across these varied and vital industries.
Verified Market Reports® is also a member of ESOMAR, an organization renowned for setting the benchmark in ethical and professional standards in market research. This affiliation highlights Verified Market Reports’ dedication to conducting research with integrity and reliability, ensuring that the insights offered are not only valuable but also ethically sourced and respected worldwide.
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DELRAY BEACH, Fla., Dec. 13, 2024 /PRNewswire/ — The Causal AI Market is slated to expand from USD 56.2 million in 2024 to USD 456.8 million by the year 2030 at an impressive CAGR of 41.8% over the forecast period, according to a new report by MarketsandMarkets™.
Browse in-depth TOC on “Causal AI Market”
330 – Tables
54 – Figures
331 – Pages
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=162494083
Scope of the Report
|
Report Metrics |
Details |
|
Market size available for years |
2019–2030 |
|
Base year considered |
2023 |
|
Forecast period |
2024–2030 |
|
Forecast units |
USD (Million) |
|
Segments covered |
Offering, Application, Vertical and Region |
|
Geographies covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
|
Companies covered |
IBM (US), Google (US), Microsoft (US), Dynatrace (US), Cognizant (US), Logility (US), Datarobot (US), CausaLens (UK), Aitia (US), Taskade (US), Causely (US), Causaly (UK), Causality Link (US), Xplain data (Germany), Parabole.AI (US), Datma (US), Incrmntl (Israel), Scalnyx (France), Geminos (US), Data Poem (US), CausaAI (Netherlands), Causa (UK), Lifesight (US), Actable AI (UK), biotx.ai (Germany), Howso (US), VELDT (Japan), and CML Insight (US) |
The Causal AI Market is witnessing sharp expansion as it can address important issues that traditional AI finds difficult to resolve. This need for transparency, trust, and actionable insights is driving the adoption of causal AI. The adoption of causal AI is being driven by the demand for transparency, trust, and actionable insights in critical sectors such as healthcare, finance, and supply chain management. Causal AI is an essential tool for companies wanting to remain competitive in a data-driven world, as it can reveal cause-and-effect relationships and improve decision-making. For example, companies are using causal AI to comprehend the real factors behind customer behavior, improve marketing tactics, or forecast the consequences of operational choices. Moreover, improvements in data accessibility, computing capabilities, and user-friendly interfaces are reducing obstacles for organizations of all sizes to adopt causal AI solutions.
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By offering, causal inference tools segment will register the fastest growth rate over the forecast period owing to enhanced decision making across diverse scenarios
Causal inference tools are becoming the most rapidly expanding segment in the Causal AI Market because of their adaptability and availability in various industries. These tools give organizations the ability to discover cause-and-effect relationships within their data, allowing for accurate decision-making in fields such as marketing, healthcare, and operations. Businesses are starting to realize the drawbacks of AI that relies on correlations, as it only detects patterns without providing explanations for outcomes. Causal inference tools help to close this divide by providing useful information that can be used to shape strategies, like determining which marketing campaigns increase customer engagement or studying the factors that impact patient recovery. Their growth is also fueled by the availability of intuitive, user-friendly interfaces that allow non-technical users to apply complex causal analysis without requiring deep expertise. Causal inference tools are becoming essential as organizations require more accountability and transparency in their decision-making, leading to their quick adoption.
Rising adoption of causal AI to augment financial decision making with cause-and-effect analysis will push BFSI as the largest vertical by market size in 2024
The BFSI vertical is poised to hold the largest market share in the Causal AI Market, fueled by its requirements for clarity, risk control, and practical information. Causal AI helps financial institutions tackle ever-changing, regulated environments where comprehending the reasons behind events is just as important as foreseeing them. For instance, JPMorgan Chase utilizes causal AI to pinpoint the underlying reasons for customer turnover, enabling specific actions to keep valuable customers. In the same way, Citibank employs causal models to evaluate the effects of different credit risk strategies, leading to enhanced loan approval procedures and a decrease in defaults. In the insurance industry, firms such as Allstate have implemented causal AI to enhance the identification of claim fraud by pinpointing actions that are closely linked to fraudulent behavior, resulting in a documented decrease of over 10% in unnoticed fraud. In addition, insurance companies employ causal AI to customize policy suggestions by examining the specific reasons for customer preferences, greatly improving customer contentment. Compliance with regulations continues to drive the increase in adoption. For example, HSBC uses causal AI to comply with AML laws by identifying causal connections in transaction data, simplifying investigations, and avoiding significant penalties. The use of causal AI in precise decision-making, along with its demonstrated effects on profitability and compliance, cements BFSI as the top vertical in the market.
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Asia Pacific is set to become the fastest growing region over the forecast period, fueled by increasing investments in responsible AI deployment for decision-making
Several key factors are driving rapid growth in the Causal AI Market in the Asia Pacific. Governments and businesses in the APAC region, specifically in nations such as China, Japan, and India, are making significant investments in AI innovation to promote the development and utilization of causal AI technologies. Sectors like healthcare and finance in the region are utilizing causal AI to enhance decision-making and operational efficiency. Hospitals in Singapore are using causal AI in healthcare to enhance treatment plans, leading to a substantial enhancement in patient results. Banks in India are using causal AI in the financial industry to improve fraud detection, leading to a significant decrease in fraudulent transactions. Manufacturing hubs in countries like Vietnam and Thailand are adopting causal AI to predict and mitigate disruptions. This trend is also assisted by the regional regulatory landscape, which favors responsible artificial intelligence practices, increasing the market demand for causal models that are both transparent and free from bias.
Top Key Companies in Causal AI Market:
The major players in the Causal AI Market include IBM (US), Logility (US), CausaLens (UK), Aitia (US), Causely (US), Geminos (US), along with SMEs and startups such as Data Poem (US), CausaAI (Netherlands), Causa (UK), Lifesight (US), amd Actable AI (UK).
Browse Adjacent Markets: Artificial Intelligence (AI) Market Research Reports & Consulting
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Get access to the latest updates on Causal AI Companies and Causal AI Industry
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
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MarketsandMarkets™ INC.
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