Primo Water Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported net sales of $81,770,000 compared to $82,207,000 a year ago. Loss from operations was $58,184,000 compared to income from operations of $10,551,000 a year ago. Loss before income taxes was $60,649,000 compared to income before income taxes of $5,398,000 a year ago. Net loss was $58,238,000 compared to net income of $4,947,000 a year ago. Diluted loss per share was $1.45 compared to earnings of $0.14 a year ago. Adjusted EBITDA was $16,224,000 compared to $18,025,000 a year ago. Adjusted net income was $7,461,000 or $0.18 per diluted share compared to $6,417,000 or $0.19 per basic and diluted share a year ago. Decrease in Refill sales and volume, which was partially offset by growth in Dispensers and Exchange. Adjusted EBITDA was, driven primarily by the decrease in sales and volume in the Refill business, the implementation of an everyday instant redeemable coupon promotion in Exchange, as well as a reduction in Dispenser operating margins, primarily related to an unfavorable change in product and customer sales mix, and, to a lesser extent, the impact of tariffs imposed in the second quarter of 2018 on dispensers imported from China.

For the nine months, the company reported net sales of $231,231,000 compared to $217,762,000 a year ago. Loss from operations was $46,575,000 compared to income from operations of $9,829,000 a year ago. Loss before income taxes was $65,484,000 compared to $8,568,000 a year ago. Net loss was $56,577,000 compared to $9,391,000 a year ago. Diluted loss per share was $1.55 compared to $0.28 a year ago. Net cash provided by operating activities was $22,784,000 compared to $10,650,000 a year ago. Purchases of property and equipment were $14,200,000 compared to $13,434,000 a year ago. Purchases of bottles, net of disposals was $1,596,000 compared to $2,120,000 a year ago. Additions to intangible assets and other were $975,000 compared to $113,000 a year ago. Adjusted EBITDA was $43,570,000 compared to $41,768,000 a year ago. Adjusted net income was $12,900,000 or $0.34 per diluted share compared to $6,756,000 or $0.20 per basic and diluted share a year ago.

The company now expects net sales for the full year 2018 to be in the range of $304.0 million to $308.0 million, and adjusted EBITDA for the full year to be in the range of $54.0 to $58.0 million, with the change in full-year adjusted EBITDA due to its results for the third quarter, its short-term investments in Refill to improve servicing and address machine downtime, and its acceleration of marketing and promotional investments in Dispensers and Exchange.