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Primo Water Announces Third Quarter 2010 Results

WINSTON-SALEM, N.C., Dec. 2, 2010 (GLOBE NEWSWIRE) -- Primo Water Corporation (Nasdaq:PRMW), a rapidly growing provider of three-and five-gallon purified bottled water, self-serve filtered drinking water and water dispensers sold through major retailers nationwide, today announced its third quarter 2010 results. A conference call will be held at 8:30 a.m., Eastern Time, today to discuss Primo's results and may be accessed on Primo's website at www.primowater.com .

Business Highlights

  • 700 Exchange locations added (including the first Walmart locations) bringing total Exchange locations to 7,900 at September 30, 2010
  • Began shipping next-generation water dispenser products to retailers
  • Successfully completed IPO, with trading of common stock commencing on November 5, 2010
  • Completed the acquisition of assets from Culligan Store Solutions, LLC (the "Culligan Refill Business") on November 10, 2010

Financial Highlights

Primo's third quarter 2010 financial results are presented in accordance with generally accepted accounting principles ("GAAP") and do not include pro forma results related to the acquisition of the Culligan Refill Business completed in the fourth quarter of 2010. Third quarter 2010 financial results include the following:

  • Exchange net sales increased 12.2% to $7.1 million compared to $6.3 million in the third quarter of 2009
  • Product net sales decreased 57.1% to $3.4 million compared to $7.9 million in the third quarter of 2009
  • Product unit sell-through to consumers at retail increased 15% year-to-date compared to the same period in 2009
  • Total net sales decreased 25.3% to $10.9 million compared to $14.6 million in the third quarter of 2009
  • Net loss attributable to common shareholders was $5.9 million compared to a net loss of $2.8 million in the third quarter of 2009 and included a non-recurring charge of $2.3 million in connection with the recent IPO

Net sales for the third quarter of 2010 decreased 25.3% to $10.9 million compared to $14.6 million in the third quarter of 2009. Net sales are primarily derived from two business segments: sales of three- and five-gallon purified bottled water ("Exchange") and sales of water dispensers ("Products"). 

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