Colabor Group Reports Results for the First Quarter of 2019 and Appoints its New Chief Financial Officer
May 02 2019 - 6:00AM
Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Corporation”)
today reported its results for the first quarter ended March 23,
2019.
First Quarter 2019 Highlights:
- Sales stood at $235.0 million compared with $245.9 million
during the equivalent period of 2018, resulting from the loss of
volume in Ontario from the loss of a supply contract as of April 1,
2018
- EBITDA in the quarter reached $0.3 million, representing an
improvement of $1.5 million from the equivalent period of 2018,
resulting from the implementation of the rationalization plan, from
measures put in place to optimize operations and from the increase
in gross margins
- Growing sales from Broadline Distribution activities in
Quebec
- Gross margin improvements in dollars of sales by 2.5%, from a
more favorable customer and product mix
- Total debt reduced to $109.4 million from $114.9 million during
the equivalent period of 2018
Chief financial officer's appointment:
- On May 2, 2019, The Corporation announces the appointment of
Mr. Pierre Gagné, CPA, CA, MBA, to the position of Senior
Vice-President and Chief Financial Officer, effective May 27, 2019.
M. Gagné has over 30 years of experience in finance and held Chief
Financial Officer positions at large private and public companies
such as FLS Transportation Services Limited, GDI Integrated
Facility Services Inc. and Cogeco Inc/Cogeco Cable Inc.
Table of First Quarter Financial
Highlights:
Financial
highlights |
Quarters ended |
(unaudited, thousands of dollars except per-share
data) |
March 23, 2019 |
March 24, 2018 |
|
84 days |
84 days |
Sales |
235,048 |
|
245,890 |
|
EBITDA1 |
281 |
|
(1,202 |
) |
Net earnings (loss) |
(2,733 |
) |
(4,480 |
) |
Per share
- basic and diluted ($) |
(0.03 |
) |
(0.04 |
) |
Cash flow from
operating activities2 |
(526 |
) |
(642 |
) |
Total debt |
109,380 |
|
114,868 |
|
Weighted average number of shares
outstanding(basic, in thousands)3 |
101,139 |
|
101,306 |
|
1 Non-IFRS measure. Refer to the table of
reconciliation of Net Earnings to EBITDA.2 After the net change in
working capital.3 The Corporation announced, on January 15, 2018,
that it had reduced by less than 1% the number of shares issued and
outstanding following the ongoing liquidation and dissolution of
Colabor Investments Inc.
"All of the initiatives undertaken over the past
three quarters are helping to improve our financial results. In the
first quarter of 2019, our gross margins continued to expand, our
EBITDA increased and we prioritized the repayment of debt," stated
Lionel Ettedgui, President and Chief Executive Officer of
Colabor.
Outlook
“During the last quarter we announced our
objective to focus on three pillars, these are to expand our
Broadline activities in Quebec, integrate and optimize our business
units and reduce our level of debt. Our team is motivated and
determined to pursue this direction and is working actively to
create value for our shareholders,” added Mr. Ettedgui.
Conference Call
Colabor will hold a conference call to discuss
these results, today Thursday May 2, 2019, beginning at 9:00 a.m.
Eastern time. Interested parties can join the call by dialing
1-877-855-7766 (from anywhere in North America). If you are unable
to participate, you can listen to a recording by dialing
1-800-585-8367 and entering the code 8731949 on your telephone
keypad. The recording will be available from 11:30 a.m. on
Thrusday, May 2, 2019, to 11:59 p.m. on Thursday May 16, 2019.
Those wishing to join the webcast and presentation can do so by
clicking on the following
link: http://www.colabor.com/en/investisseurs/evenements-et-presentations/
Annual Meeting of
Shareholders
Colabor will hold its annual meeting of
shareholders on Thursday May 2, 2019 at 10:30 a.m. at The
Corporation’s head office located at 1620 De Montarville Boulevard,
Boucherville, Quebec, J4B 8P4. Lionel Ettedgui, President and CEO
will discuss Colabor’s recent initiatives and review the 2019 first
quarter results.
Non-IFRS Measures
The information provided in this release
includes non-IFRS performance measures, notably adjusted earnings
before financial expenses, income taxes, depreciation and
amortization (“EBITDA”) and cash flow. As these concepts are not
defined by IFRS, they may not be comparable to those of other
companies.
Table of reconciliation of Net Earnings (Loss)
to EBITDA
Reconciliation of
Net Earnings (Loss) to EBITDA |
Quarters ended |
(unaudited, thousands of dollars except per-share
data) |
March 23, 2019 |
March 24, 2018 |
|
84 days |
84 days |
Net earnings (loss) |
(2,733 |
) |
(4,480 |
) |
Income taxes expense
(recovery) |
(1,051 |
) |
(1,550 |
) |
Financial expenses |
1,829 |
|
1,837 |
|
Impairment loss on the
available-for-sale asset |
— |
|
118 |
|
Depreciation and amortization |
2,212 |
|
2,746 |
|
Impairment loss on goodwill, intangible assets and property,
plant and equipment |
24 |
|
127 |
|
EBITDA |
281 |
|
(1,202 |
) |
Additional Information
The Management Discussion and Analysis and the
financial statements of the Corporation will also be available on
SEDAR (www.sedar.com) following publication of this release.
Additional information about Colabor Group Inc. can be found on
SEDAR and on the Corporation’s website at www.colabor.com.
Forward-Looking Statements
This news release contains certain statements
that may be deemed to be forward-looking statements reflecting the
opinions or current expectations of Colabor Group Inc. concerning
its performance, business operations and future events. Such
statements are subject to risks, uncertainties and assumptions and
the analysis of the debt structure and available alternatives, and
risks mentioned in the Corporation’s annual information form found
under its profile on SEDAR (www.sedar.com), such as the risk of
dilution for existing shareholders. As such, these statements are
not guarantees of future performance, and actual results, realities
or events may differ materially. Except as required by law, the
Corporation assumes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions or other factors change.
About Colabor
Colabor is a distributor and wholesaler of food
and related products serving the hotel, restaurant and
institutional markets or "HRI" in Quebec, Ontario and in the
Atlantic provinces, as well as the retail market (grocery stores
and convenience stores). Within its two operating segments, Colabor
offers specialty food products such as meat, fresh fish and
seafood, as well as food and related products through its Broadline
activities.Further information:
Danielle Ste-MarieSte-Marie Strategy and
Communications Inc.Investor RelationsTel. : 450-449-0026, ext.
1180Fax : 450-449-6180investors@colabor.com
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