Wednesday March 20th, 2013 - 12:35PM
Primo Water Corp. reported that full-year fiscal 2012 sales increased 10.1% to $91.5 million compared to the prior year. For the fourth quarter of 2012, the company reported net sales of $20.9 million, down slightly from $21.1 million in the 2011 period.
In the fourth quarter of 2012, water segment sales increased 8.2% to $15 million compared to $13.9 million in the fourth quarter of 2011. Sales in the water segment consist of multi-gallon purified bottled water and self-serve filtered drinking water vending services. Dispenser segment sales for the fourth quarter decreased 9.2% to $5.8 million compared to $6.4 million in the fourth quarter of 2011. Sell-through to consumers continued to grow, reaching 91,870 units, an increase of 27.9% over fourth-quarter 2011 levels.
For the fiscal year, Primo reported that adjusted EBITDA increased 84.5% to $5.5 million from $3 million in 2011. Water sales for the year increased 6.8% to $62.7 million compared to $58.7 million in 2011. Dispenser sales for 2012 increased 22.1% to $28.8 million compared to $23.6 million in 2011.
"We are pleased with our net sales growth and operating improvements which enabled us to report our fourth consecutive quarter of adjusted EBITDA improvement as we focused on distribution cost optimization in our water business and increased gross margins in our dispenser business," commented Billy Prim, Primo Water's president and CEO. "We continue to see positive business trends in 2013 and are focused on increasing EBITDA, which will be driven by water segment revenue growth, improved gross margins and decreased expenses. Water segment revenue growth will continue to be driven by new end-user customers, as we believe consumer growth in the water segment will further increase with consumer purchases of water dispensers, and our dispenser sales continue to experience strong growth."