Primo Water Corporation Releases 2021 Investor Day Highlights

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Nov 17, 2021, 08:30 ET

TAMPA, Fla., Nov. 17, 2021 /PRNewswire/ - Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the "Company" or "Primo"), a leading provider of sustainable drinking water solutions in North America and Europe, today released details during its virtual investor day regarding its 2024 organic growth outlook, along with a proposed multi-year step-up in its dividend payout:

High single digit revenue growth
Adjusted EBITDA of $500 million to $525 million dollars
Adjusted EBITDA margin building to the high 21% range, driven by investment in efficiencies, increased scale, and density, and an expected 100-basis point benefit from exiting the Company's North America single-use plastic bottled water retail business
Adjusted EPS of $1.10 to $1.20 per share
A net leverage ratio of between 2.0 and 2.5 times net debt to adjusted EBITDA
Return on invested capital of more than 12%

The company also announced a multi-year step-up in its dividend payout with an increased quarterly dividend of $0.01 per share in each of 2022, 2023 and 2024. This equates to a compounded annual growth rate of nearly 15% per year.

Primo will host the virtual event today, November 17, 2021, at 9:00 a.m. ET. A slide presentation and live audio webcast will be available through the investor section of the Company's website at www.primowatercorp.com. The event will be archived for playback on the investor section of the website.

For purposes of public disclosure, including this and future similar events, Primo uses the investor section of its website as the primary channel for publishing key information to its investors, some of which may contain material and previously non-public information.

ABOUT PRIMO WATER CORPORATION

Primo Water Corporation is a leading pure-play water solutions provider in North America and Europe and generates approximately $2.0 billion in 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 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 22-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 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 22-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 America as 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). For more information, visit www.primowatercorp.com.

Non-GAAP Measures

The Company routinely supplements its reporting of GAAP measures by utilizing certain non-GAAP measures to separate the impact of certain items from its underlying business results. Since the Company uses these non-GAAP measures in the management of its business, management believes this supplemental information is useful to investors for their independent evaluation and understanding of Primo's business. The non-GAAP financial measures are in addition to, and not meant to be considered superior to, or a substitute for, the Company's financial statements prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this announcement reflect management's judgment of particular items, and may be different from, and therefore may not be comparable to, similarly titled measures reported by other companies. With respect to the Company's expectations of its performance, the Company's reconciliations of expected 2024 metrics (adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, net leverage and ROIC), are not available, as the Company is unable to quantify certain amounts at the degree of precision that would be required in the relevant GAAP measures without unreasonable effort. These items include taxes, interest costs that would occur if the Company issued debt, and costs to acquire and or sell a business if the Company executed such transactions, which could significantly affect our financial results. These items depend on highly variable factors and any such reconciliations would imply a degree of precision that would be confusing or misleading to investors. Primo expects the variability of these factors to have a significant, and potentially unpredictable, impact on the Company's future GAAP financial results.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time Primo makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this press release include, but are not limited to, statements related to future financial results (including Primo's outlook for 2024), Primo's planned exit from its single-use bottle retail water business in North America, the payment of future dividends and related matters. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate. Factors that could cause actual results to differ materially from those described in this press release include, among others: risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; the effect of economic, competitive, legal, governmental and technological factors on Primo's business; the impact of national, regional and global events on our business, including the recent COVID-19 outbreak, and Primo's ability to maintain its quarterly dividend. The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Primo's Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. Primo does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law.

SOURCE Primo Water Corporation