(RTTNews) - Non-alcoholic beverage company Cott Corp. (COT: News ,BCB.TO: News ) Thursday reported a profit for the third quarter, reflecting the absence of goodwill and asset impairment charges incurred last year. Earnings for the quarter, helped by higher average selling prices and substantially lower operating costs, topped analysts' estimates by two cents.

Net income for the quarter attributed to the company was US$13.9 million or US$0.18 per share, compared with a loss of $US 87.6 million or US$1.25 per share in the same quarter last year. On an average, seven analysts polled by Thomson Reuters expected the company to earn US$0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Last year's results included a US$69.2 million of goodwill impairments and US$26.6 million of asset impairments.

Quarterly revenues were US$404.9 million, down 3.7% from US$420.5 million in the comparable period. Cott noted that strong revenue growth in its U.K. operation was offset by the impact of foreign exchange and a more competitive environment in North America. Excluding the impact of foreign exchange, revenue increased 1.1%. Analysts expected revenues of US$404.52 million.

By region, revenues from North America declined to US$287.2 million from US$296.9 million a year ago. Revenues from United Kingdom dropped to US$101.6 million from US$101.9 million in the prior year. Revenues from Mexico were US$10.3 million, lower than US$16.0 million, while revenues from Royal Crown International increased marginally to US$5.8 million from $5.3 million in the comparable period.

Selling, general and administrative expenses for the quarter declined to US$36.9 million from US$42.4 million last year. Operating income for the quarter was US$26.9 million, compared with a loss of US$90.5 million in the previous year.
Gross margin increased 450 basis points to 15.8% of sales, compared to 11.3% last year. Higher average selling prices per beverage case compared to last year and substantially lower operating costs contributed to the higher gross margin percentage in the third quarter.

For the nine-month period, net income attributable to the company was US$67.5 million or US$0.92 per share, compared with a loss of US$110.7 million or US$1.56 per share in the comparable period. Year-to-date, net revenues dropped to US$1.21 billion from $1.28 billion last year.

COT is currently trading at $8.24 per share, up 4.83%, on the New York Stock Exchange.

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