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The Briefcase: Major impairment charge sends Primo Water to quarterly loss

The Briefcase: Major impairment charge sends Primo Water to quarterly loss

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Impairment charge sends Primo to quarterly loss

The new owner of Primo Water Corp. reported Thursday having a $136 million loss in the second quarter after taking a $115.2 million goodwill and asset-management impairment charge.

Primo cited the impact from the COVID-19 pandemic for the impairment charge.

The company had an 85-cent earnings loss. Excluding the impairment charge, adjusted net income was $13 million and adjusted earnings were 8 cents a share.

Second-quarter sales were up less than 1% to $456.8 million. The company projects a third-quarter range of $480 million to $500 million.

Cott Corp., operating out of Tampa, Fla., completed on March 2 its $775 million purchase of Primo of Winston-Salem. The combined company uses Primo Water’s name, brand and stock symbol PRMW, though Primo operates as a wholly owned subsidiary of Cott.

Primo’s board of directors declared Wednesday a 6-cent cash dividend on its common stock. The dividend is payable Sept. 2 to shareholders registered as of Aug. 19.

Richard Craver

22nd Century posts $5.1M second-quarter loss

22nd Century Group Inc. reported Thursday a $5.06 million loss for the second quarter, down from an $8.04 million loss a year ago. It had a 4-cent earnings loss for the quarter.

Based in Williamsville, N.Y., 22nd Century opened cigarette-manufacturing operations in Mocksville in 2014. Following a round of job cuts in January, the company has 51 of its 69 employees in Mocksville.

22nd Century had sales of $6.4 million, up 10.7% from a year ago. It drives most of its revenue from producing traditional cigarettes for third-party customers.

The company submitted on July 21 a request to the Securities and Exchange Commission to raise up to $100 million in capital through a shelf registration.

A typical stock offering consists of a fixed number of shares being sold at a fixed price at the same time. By comparison, a company using an at-the-market strategy can sell shares incrementally at share prices that can vary by the day.

A company must have a shelf registration statement filed with the SEC to conduct at-the-market offerings. That statement enables a company to meet SEC registration requirements in advance.

Richard Craver

Steel production site sold for $2.9M

The Structural Steel of Carolina LLC campus in east Winston-Salem has been sold to a Georgia company for $2.9 million, according to a Forsyth County Register of Deeds filing Friday.

The properties are at 1720 and 1725 Vargrave St. The 1725 Vargrave property sold for $2.17 million, while the 1720 Vargrave property sold for $725,000.

The buyer is listed as Division 5 LLC of Winston, Ga., while the seller is SSC Fabrication Properties LLC of Winston-Salem.

Division 5 said it is “full-service structural steel and miscellaneous metals contractor for the commercial construction market serving the New England area and beyond.”

Richard Craver

Greensboro company buys Clemmons site

A Greensboro self-storage company has spent $775,000 to buy a vacant 2.77-acre property off Lewisville-Clemmons Road, according to a Forsyth County Register of Deeds filing Wednesday.

The property is at 2225 Lewisville-Clemmons Road, near Sedalia Drive and two commercial small-business campuses.

The buyer is an affiliate of AAA Storage Management. The seller is Kazakos Brothers Clemmons LLC of Statesville.

Richard Craver

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