Primo Water Reports Second Quarter Results

Primo Water Corporation has announced financial results for its second quarter ended June 30, 2014. Net sales increased 12.6% to $26.9 million for the second quarter from $23.8 million for the second quarter of 2013, driven by the increases of $0.9 million and $2.2 million for the water segment and the dispensers segment, respectively.

Water segment net sales increased 5.3% to $17.1 million for the second quarter compared to $16.2 million for the second quarter of 2013. The increase in water net sales was primarily due to an 11.1% increase for U.S. exchange sales driven by same-store unit growth of 9.7% for U.S. exchange compared to the second quarter of 2013. Dispenser unit sell-thru to end consumers increased 5.6% to approximately 126,000 for the second quarter of 2014.

Adjusted EBITDA increased 29.4% to $3 million from $2.3 million for the second quarter of 2013. The U.S. GAAP net loss from continuing operations for the second quarter of 2014 was $6.2 million, compared to a loss of $2.1 million for the second quarter of the prior year. The loss from continuing operations includes one-time charges of $2.8 million related to refinancing of debt, $0.9 million in transitions of the company’s exchange distribution network and $0.9 million for loss on the disposal and impairment of equipment in the water segment. 

“Our second quarter results demonstrated continued strength and leverage in our business as adjusted EBITDA exceeded our expectations and continues to grow at a faster rate than our revenues. The improvement was driven by increased revenues and gross margins across both business segments,” said Billy Prim, Primo Water’s CEO. “In addition, we were able to enter into a new credit facility that reduced our cost of capital and should allow for future growth.”