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Primo Water (PRMW)

Primo Water Corporation is a leading pure-play water solutions provider in North America, Europeand Israeland generates approximately $2.1 billionin annual revenue. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo's revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration which drives recurring purchases of Primo's razorblade offering. Primo's razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer's door, whether at home or to commercial businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position. Primo's water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association (IBWA) in North Americaas well as with Watercoolers Europe (WE), which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection. Primo is headquartered in Tampa, Florida(USA).

Company profile

Ticker
PRMW
Exchange
CEO
Thomas Harrington
Employees
Location
Fiscal year end
Former names
COTT CORP /CN/
SEC CIK
Subsidiaries
Aimia Foods Limited • Aquaterra Corporation • Bibo Limited • Café Espresso Italia Ltd • Chateau d'Eau SAS • Chateaud’eau Sarl • Cott (Barbados) IBC Ltd. • Cott Retail Brands Limited • Cott Switzerland GmbH • Decantae Mineral Water Limited ...

PRMW stock data

Analyst ratings and price targets

Last 3 months
Deutsche Bank
Maintains
Hold
$16.00
13 May 22

Calendar

11 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jul 22 Apr 22 Jan 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 102.2M 102.2M 102.2M 102.2M 102.2M 102.2M
Cash burn (monthly) (no burn) 1.93M 7.03M (no burn) (no burn) (no burn)
Cash used (since last report) n/a 2.64M 9.64M n/a n/a n/a
Cash remaining n/a 99.56M 92.56M n/a n/a n/a
Runway (months of cash) n/a 51.7 13.2 n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
13 May 22 Prim Billy D Common Shares Grant Acquire A No No 14.12 9,560 134.99K 1,088,436
13 May 22 Britta Bomhard Common Shares Grant Acquire A No No 14.12 9,560 134.99K 39,313
13 May 22 Rosenfeld Eric Common Shares Grant Acquire A No No 14.12 9,560 134.99K 309,294
13 May 22 Monahan Gregory R Common Shares Grant Acquire A No No 14.12 9,560 134.99K 111,001
13 May 22 Fowden Jeremy S G Common Shares Grant Acquire A No No 14.12 9,560 134.99K 1,268,770
0.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 1 1
Opened positions 0 0
Closed positions 0 0
Increased positions 1 0 NEW
Reduced positions 0 0
13F shares Current Prev Q Change
Total value 3.43M 3.81M -10.0%
Total shares 240.42K 216.46K +11.1%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Eagle Asset Management 240.42K $3.43M +11.1%
Largest transactions Shares Bought/sold Change
Eagle Asset Management 240.42K +23.95K +11.1%

Financial report summary

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Risks
  • The COVID-19 pandemic has adversely affected, and may continue to affect our business, financial condition and results of operations.
  • We may be unable to compete successfully in the markets in which we operate.
  • Our ingredients, packaging supplies and other costs are subject to price increases, and we may be unable to effectively pass rising costs on to our customers.
  • If we are unable to maintain relationships with our raw material suppliers, we may incur higher supply costs or be unable to deliver products to our customers.
  • If we fail to manage our operations successfully, our business and results of operations may be negatively affected.
  • Our geographic diversity subjects us to the risk of currency fluctuations.
  • Uncertainty in the financial markets and other adverse changes in general economic conditions in the countries in which we do business could adversely affect our industry, business and results of operations.
  • Substantial disruption to production at our production facilities could occur.
  • Our business is dependent on our ability to maintain access to our water sources; water scarcity, government regulation of water access and poor quality could negatively affect our long-term financial performance.
  • Climate change may have a long-term adverse impact on our business and results of operations.
  • Our success depends, in part, on our intellectual property, which we may be unable to protect.
  • Our business is seasonal and adverse weather conditions could negatively affect our business, financial condition and results of operations.
  • Global or regional catastrophic events could affect our operations and results of operations.
  • We may devote a significant amount of our management’s attention and resources to our ongoing review of strategic opportunities, and we may not be able to fully realize the potential benefit of any such alternatives that we pursue.
  • We may not realize the expected revenue and cost synergies related to our acquisitions.
  • Changes in future business conditions could cause business investments and/or recorded goodwill, indefinite life intangible assets or other intangible assets to become impaired, resulting in substantial losses and write-downs that would negatively affect our results of operations.
  • We have a significant amount of outstanding indebtedness, which could adversely affect our financial health, and future cash flows may not be sufficient to meet our obligations.
  • Our Revolving Credit Facility and the indentures governing our outstanding notes each contain various covenants limiting the discretion of our management in operating our business, which could prevent us from capitalizing on business opportunities and taking some corporate actions.
  • A portion of our debt may be variable rate debt, and changes in interest rates could adversely affect us by causing us to incur higher interest costs with respect to such variable rate debt.
  • Our success depends in part upon our ability to recruit, retain and prepare succession plans for our CEO, CFO, senior management and key employees.
  • Our business could be adversely affected by increased labor costs.
  • We may not be able to renew collective bargaining agreements on satisfactory terms, or we could experience strikes.
  • Our products may not meet health and safety standards or could become contaminated and we could be liable for injury, illness or death caused by consumption of our products.
  • Litigation or legal proceedings could expose us to significant liabilities and damage our reputation.
  • Changes in the legal and regulatory environment in the jurisdictions in which we operate could negatively affect our results of operations, adversely affect demand for our products and services or result in litigation.
  • We are subject to risks associated with our international operations, including compliance with applicable U.S. and foreign anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and other applicable anti-corruption laws, which may increase the cost of doing business in international jurisdictions.
  • We are subject to the risk of increased taxes.
  • We depend on key information systems and third-party service providers.
  • If we are unable to securely maintain our customers’ confidential or credit card information, or other private data relating to our employees or our Company, we could be subject to negative publicity, costly government enforcement actions or private litigation, which could damage our business reputation and negatively affect our results of operations.
  • We may not continue our quarterly dividend and shareowners may never obtain a return on their investment.
  • We also face other risks that could adversely affect our business, results of operations or financial condition, which include:
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  •     This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to further the reader’s understanding of the consolidated financial condition and results of operations of our Company. It should be read in conjunction with the financial statements included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended January 1, 2022 (our “2021 Annual Report”). These historical financial statements may not be indicative of our future performance. This discussion contains a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks referred to under “Risk Factors” in Part I, Item 1A in our 2021 Annual Report. As used herein, “Primo,” “the Company,” “Primo Water Corporation,” “we,” “us,” or “our” refers to Primo Water Corporation, together with its consolidated subsidiaries.
  • Primo is a leading provider of sustainable drinking water solutions in North America and Europe. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo’s revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through retailers and online at various price points. The dispensers help increase household penetration, which drives recurring purchases of Primo’s razorblade offering. Primo’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer’s door, whether at home or to businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 14,000 locations, water dispenser sales at approximately 9,000 locations and water refill units at approximately 24,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint.

Content analysis

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