Cott Corporation (NYSE:COT) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 10:00 am ET

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Cott Corporation (NYSE:COT) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Cott Corporation's Third Quarter 2019 Earnings Conference Call. [Operator Instructions] This conference call includes forward-looking statements including statements concerning the company's future financial and operational performance. These statements should be considered in connection with cautionary statements and disclaimers contained in the safe harbor statements in this morning's earnings press release and the company's annual report on Form 10-K and quarterly reports on Form 10-Q and other filings with U.S. and Canadian securities regulators. The company's actual performance could differ materially from these statements and the company undertakes no duty to update these forward-looking statements except as expressly required by applicable law. A reconciliation of 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 2019 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 Tom Harrington our Chief Executive Officer; and Jay Wells our Chief Financial Officer. Tom will kick things off by providing his thoughts on a number of activities within our business segment including a discussion on some of our ongoing initiatives and our operational performance during the third quarter relative to our expectations. He will then turn the call over to Jay for a discussion of our third quarter consolidated financial performance, as well as the results of our key operating segments and thoughts on the full year. And Tom will conclude with a few thoughts before we move to q&a.

With that let me now turn the call over to Tom.

Executive
Thomas J. Harrington

Thank you Jarrod and good morning everyone. I'm pleased to report revenue increased 6% on a currency neutral basis and excluding the divested Cott Beverages business and the change in average cost of coffee. The team delivered $96.4 million in adjust the EBITDA which was $1 million-plus higher than consensus and 5% higher than prior year. Both route-based services and the coffee tea and extract services grew revenue and EBITDA during the quarter. On the operational front we're executing against the initiatives that we've outlined in the past and fully expect our efforts to deliver growth over the coming quarters and years. Starting with our North American route-based services business. We are delivering consistent top line revenue and EBITDA growth and the pricing initiatives that we implemented in Q3 of 2018 have offset the general inflation experienced over the last two years. As the North American route-based business is our largest business I'm happy to report the team delivered 5% organic HOD water revenue growth in the quarter.

Consistent with historical seasonality the team drove our HOD water growth through the delivery of good net customer growth increased volume ongoing improvement and customer satisfaction and service levels as well as increased pricing. We're confident that the investments in the customer experience that we are