Cott Corporation (NYSE:COT) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 10:00 am ET

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Cott Corporation (NYSE:COT) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Cott Corporation's Third Quarter 2018 Earnings Conference Call. All participants are currently in listen-only mode. This call will end no later than 11:00 AM Eastern Time. The call is being webcast live on Cott's website at www.cott.com and will be available for playback there until November 23, 2018.

(Forward-Looking Cautionary Statements)

A reconciliation of any non-GAAP financial measures discussed during the call with the most comparable measures in accordance with GAAP is available in the company's third quarter 2018 earnings announcement released earlier this morning or on the Investor Relations section of the company's website at www.cott.com.

I'll now turn the call over to Jarrod Langhans, Cott's Vice President of Investor Relations.

Executive
Jarrod Langhans

Good morning and thank you for joining our call. Today, I'm accompanied by Jerry Fowden, our Chief Executive Officer; Jay Wells, our Chief Financial Officer; and Tom Harrington, who currently heads up our Route Based Services segment and will be transitioning into the CEO role effective at the beginning of fiscal 2019.

Jerry will start this morning's call by providing a few thoughts on the quarter, as well as some commentary on our new board members. Tom will then offer some thoughts on our company overall and he will then provide an update on some of the initiatives that we have put in place over the last few years as we look to deliver on our full year 2018 and 2019 free cash flow expectations with steady growth thereafter, before turning the call over to Jay for a discussion of our third quarter consolidated financial performance, full year expectations as well as the results of both our Route Based Services segment and our Coffee, Tea and Extract Solutions segment before moving to Q&A.

With that, let me now turn the call over to Jerry.

Executive
Jerry Fowden

Thank you, Jarrod, and good morning, everyone. In looking at our third quarter, I'm pleased to report that our results continue to come in as expected, our strategy is working and we have wind in our sails as we look to the future. All-in-all, with these good results and a positive outlook, it seems like the perfect time to turn the reins over to Tom Harrington to lead Cott into the future. As you know, Tom will take over as Cott's new CEO from the start of 2019 and I will transition into the Chairman's role.

It's been an exciting time over the last few years, and I was proud to be part of Cott's transformation, as we executed our strategy designed to reshape our business from a mature soft drink company with low margins and a high big-box retail customer concentration to a higher margin growth-oriented company with low customer concentration and more of a reoccurring revenue business model. During this process, we not only created a new business model, but we significantly improved our growth profile, shifted our emphasis of business towards Route Based Services and meaningfully reduced our exposure to both commodity fluctuations and the big-box retail channel. This transformation