Primo Water Corporation Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2016; Provides Earnings Guidance for the Second Quarter of 2016; Revises Earnings Guidance for the Full Year of 2016
Primo Water Corporation announced unaudited consolidated earnings results for the first quarter ended March 31, 2016. For the quarter, the company announced net sales of $32,296,000 compared to $29,213,000 for the same period a year ago. Income from operations was $1,513,000 compared to $320,000 for the same period a year ago. Income from continuing operations was $1,042,000 or $0.04 per basic and diluted share compared to loss from continuing operations of $199,000 or $0.01 per basic and diluted share for the same period a year ago. Net income was $1,031,000 or $0.04 per basic and diluted share compared to net loss of $237,000 or $0.01 per basic and diluted share for the same period a year ago. Net cash provided by operating activities was $2,715,000 against $1,883,000 a year ago. Purchases of property and equipment was $2,938,000 against $1,474,000 a year ago. EBITDA was $3,921,000 compared to $2,905,000 for the same period a year ago. Adjusted EBITDA was $4,921,000 compared to $3,664,000 for the same period a year ago. Pro forma net income from continuing operations was $2,002,000 or $0.07 per diluted share compared to $522,000 or $0.02 per basic and diluted share for the same period a year ago. Net sales increased 10.6% driven by increase in both Water and Dispenser segment net sales. Adjusted EBITDA increased 34.3% driven by the increase in net sales and margin expansion.
For the second quarter of fiscal 2016, the company expects net sales of $33.3 to $34.3 million. Looking at cash flow for the second quarter, adjusted EBITDA to be in the range of $5.5 to $5.9 million or an EBITDA margin of 16% to 17%, up from 14.3% in 2015.
For the full year 2016, the company raised outlook due to better-than-expected results for the first quarter, and now expect sales for the full year to be in the range of $132.2 million to $134.2 million, up slightly from previous guidance. The company expects adjusted EBITDA to be in the range of $21.5 million to $22.3 million up from previous guidance. The company continue to expect interest expense to be approximately $1.9 million and CapEx to be in the range of $10 million to $12 million, resulting in free cash flow between $7 million and $10 million.