GlobeNewswire

Colabor Group Reports Outcomes for the First Quarter 2021

BOUCHERVILLE, Quebec, May 03, 2021 (WORLD NEWSWIRE)– Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Company”) reports its results for the first quarter ended March 20, 2021. First Quarter 2021 Financial Highlights and Current Occasions: Sales decreased by 23.3% to $85.6 million, compared to $111.6 million for the very first quarter of 2020, generally explained by the obligatory closure of restaurant dining rooms in Quebec in the first quarter of 2021 as a result of the pandemic and the termination of a contract in Specialized circulation activities throughout the first quarter of 2020; Net loss from continuing operations reduced to $1.0 million compared to $1.9 million for the matching period of 2020; Adjusted EBITDA( 1) increased to $3.8 million from $3.7 million for the matching duration of 2020 and increase in adjusted EBITDA( 1) margin to 4.5% of sales compared to 3.3% of sales during the corresponding period of 2020; Steady cash flow from operating activities of $5.4 million compared to $5.6 million for the first quarter of 2020, in spite of lower sales; andConclusion of brand-new credits agreements in February 2021, and redemption of all outstanding convertible debentures finished on March 23, 2021. Table of first quarter 2021 Financial Highlights: Financial highlights12 weeks(in countless dollars other than percentages, per share data and monetary leverage ratio)2021 2020 $ $ Sales from continuing operations85,635 111,613 Adjusted EBITDA( 1 )3,848 3,698 Adjusted EBITDA( 1) margin (%)4.5 3.3 Net loss from continuing operations(1,011)(1,871)Bottom line(1,027)(8,330)Per share – basic and diluted ($)( 0.01 )( 0.08 )Cash flow from operating activities5,376 5,613 Financial positionAs at As at March 20, December 26, 2021 2020 Net financial obligation( 2 )50,530 52,100 Financial utilize ratio( 3 )1.7 x 1.8 x (1 )Non-IFRS step. Describe the table Reconciliation of Net Incomes (loss) to changed EBITDA and to MD&An area 6 “Non-IFRS Performance Procedures”. Adjusted EBITDA represents net earnings (loss) prior to costs not associated with current operations, depreciation and amortization and expenses for stock-based payment strategy.( 2 )Non-IFRS step. Refer to MD&A section 6 “Non-IFRS Performance Procedures”. Net debt represents bank indebtedness, current part of long-term debt, long-lasting debt and convertible debentures, net of cash.( 3 )Monetary utilize ratio is a sign of the Business’s capability to service its long-lasting financial obligation. It is specified as net debt/ changed EBITDA for the last twelve months. Describe MD&A section 6 “Non-IFRS Efficiency Measures”. “Despite dining establishment dining-room closures and citizen confinement, we are ending the very first quarter of 2021 with great results. Due to the optimization measures executed in 2020, in addition to tight management of our cost structure, subsidies contribution and ideal cash flow management in order to decrease the impacts of the pandemic, Colabor continued to enhance profitability, generate strong cash flow and lower net debt,” stated Louis Frenette, President and Ceo of Colabor. Results for the First Quarter of 2021 Consolidated sales for the very first quarter totaled up to $85.6 million compared to $111.6 million during the corresponding quarter of 2020, a reduction of 23.3%. The pandemic impacted all 12 weeks of the 2021 quarter compared to 2 weeks in the quarter of last year. Sales for the Distribution section decreased by 29.0% described by a quantity of $8.6 million related to the termination of an agreement from the Specialized circulation during the first quarter of 2020, as well as the volume decline associated to the pandemic for dining establishments and chains clients, partially reduced by a volume increase for retail customers. Wholesale segment sales decreased by 8.2%, due to a volume decline from the pandemic and lower intersegment sales, partially alleviated by development from some customers less impacted by the impacts of the pandemic and brand-new customers. Adjusted EBITDA( 1) from continuing activities reached $3.8 million or 4.5% of sales from continuing activities compared to $3.7 million or 3.3% throughout 2020. The improvement, as a portion of sales, are primarily due to the deployment of operational optimization measures in fiscal year 2020, the decline in incomes arising from steps taken throughout the pandemic and the subsidies of $1.3 million, mitigated by the decline in sales due to the pandemic. Net loss from continuing operations was $1.0 million, a decline of 46.0% compared to $1.9 million for the matching quarter of 2020 resulting essentially from the increase in adjusted EBITDA( 1 ), the reduction in the devaluation and amortization expenditures, the reduction in costs not related to current operations, mitigated by the reduction of the income tax recuperated. Bottom line for the first quarter were $1.0 million, compared to bottom line of $8.3 million for the corresponding duration of 2020. The variation is discussed by the elements pointed out above and to the bottom line reduction of $6.5 million associated to discontinued operations. Capital and Monetary Position Money streams from running activities reached $5.4 million for the very first quarter, compared to $5.6 million for the corresponding duration of 2020. This decline is mainly due to a greater usage of working capital( 4 ), reduced by the increase in adjusted EBITDA( 1 ). As at March 20, 2021, the Company’s working capital( 4) was $29.9 million, down from $31.2 million at the end of the fiscal year 2020. This variation is described by the drop in sales during the very first quarter due to the pandemic and by the seasonality effect. As at March 20, 2021, the Company’s net financial obligation( 2 ), consisting of convertible debentures and web of money, was down to $50.5 million, compared to $52.1 million at the end of the fiscal year 2020. This reduction is primarily due to the increase in cash created by cash streams from running activities. (4 )Operating capital is a sign of the Business’s ability to hedge its present liabilities with its current properties. Describe MD&A section 3.2 “Financial Position” for detailed calculation. Outlook “We will continue to adapt as the pandemic progresses and we are gotten ready for the ultimate healing. Closing the new credit arrangements in the first quarter of 2021 is in line with our main goal of increasing our success and will allow us to have cash offered to execute the 2021 strategic strategy when conditions allow.”, commented Louis Frenette. Non-IFRS Performance Steps The info offered in this release includes non-IFRS efficiency procedures, notably adjusted profits before monetary expenditures, devaluation and amortization and income taxes (“Adjusted EBITDA”( 1 )). As these principles are not defined by IFRS, they might not be comparable to those of other companies. Refer to Area 6 “Non-IFRS Efficiency Measures” in the Management’s Discussion and Analysis. Reconciliation of Net Loss to Adjusted EBITDA( 1 )12 weeks(in thousands of dollars)2021 2020 $ $ Net loss from continuing operations(1,011)(1,871)Income taxes recovered( 251 )( 850 )Financial expenses1,737 1,696 Operating profits (loss)475 (1,025)Costs for stock-based compensation plan22 99 Expenses not connected to current operations91 1,080 Depreciation and amortization3,260 3,544 Adjusted EBITDA( 1 )3,848 3,698 Additional Information The Management Conversation and Analysis and the combined monetary statements of the Business are offered on SEDAR (www.sedar.com). Extra information, consisting of the annual details kind, about Colabor Group Inc. can also be found on SEDAR and on the Company’s site at www.colabor.com. Forward-Looking Declarations This news release contains particular positive declarations as specified under suitable securities law. Positive info may connect to Colabor’s future outlook and anticipated events, business, operations, financial efficiency, financial condition or outcomes and, in some cases, can be determined by terms such as “might”; “will”; “must”; “anticipate”; “strategy”; “anticipate”; “believe”; “plan”; “price quote”; “forecast”; “potential”; “continue”; “predict”, “make sure” or other similar expressions worrying matters that are not historic facts. Particularly, declarations regarding the Business’s monetary guidelines, future operating outcomes and financial efficiency, objectives and methods are positive statements. These statements are based upon certain factors and assumptions consisting of expected growth, outcomes of operations, efficiency and company prospects and chances, which Colabor believes are affordable since the present date. Refer in particular to area 2.2 “Development Techniques and Outlook” of the Business’s MD&An offered on SEDAR (www.sedar.com). While Management considers these assumptions to be reasonable based upon details currently readily available to the Business, they might show to be incorrect. Forward-looking details is also based on particular elements, consisting of dangers and uncertainties that could trigger actual outcomes to differ materially from what Colabor currently expects. For more exhaustive information on these dangers and uncertainties, the reader must describe section 10 “Threats and Uncertainties” of the Company’s MD&A. These factors are not meant to represent a total list of the factors that could impact Colabor and future occasions and results might vary significantly from what Management presently foresees. The reader should not place undue value on positive information contained in this news release, info representing Colabor’s expectations since the date of this news release (or since the date they are otherwise mentioned to be made) and are subject to change after such date. While Management may choose to do so, the Business is under no obligation (and specifically disclaims any such obligation) and does not carry out to update or modify this details at any particular time, whether as an outcome of brand-new details, future occasions or otherwise, other than as needed by law. Conference Call Colabor will hold a conference call to go over these outcomes on Tuesday, May 4, 2021, starting at 9:00 a.m. Eastern time. Interested celebrations can sign up with the call by calling 1-888-390-0549 (from anywhere in North America) or 1-416-764-8682. If you are not able to participate, you can listen to a recording by calling 1-888-390-0541 or 1-416-764-8677 and entering the code 104375 on your telephone keypad. The recording will be available from 1:30 p.m. on Tuesday, May 4, 2021, up until 11:59 p.m. on Tuesday, May 11, 2021. Those wanting to join the webcast can do so by clicking the following link: http://www.colabor.com/en/investisseurs/evenements-et-presentations/ About Colabor is a supplier and wholesaler of food and associated items serving the hotel, dining establishment and institutional markets or “HRI” in Quebec and in the Atlantic provinces, along with the retail market. Within its two operating sectors, Colabor uses specialized food such as meat, fresh fish and seafood, as well as food and related items through its Broadline activities. More information: Marie-France LabergeCorporate Controller and Interim Chief Financial OfficerColabor Group IncTel.: 450-449-4911 extension 1272investors@colabor.comDanielle Ste-MarieSte-Marie Method and Communications Inc.Investor RelationsTel.: 450-449-0026, extension 1180