BOUCHERVILLE, Québec, May 02, 2019 (GLOBE NEWSWIRE) -- 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 highlightsQuarters ended
(unaudited, thousands of dollars except per-share data)March 23, 2019March 24, 2018
 84 days84 days
Sales235,048 245,890 
EBITDA1281 (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 debt109,380 114,868 
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 EBITDAQuarters ended
(unaudited, thousands of dollars except per-share data)March 23, 2019March 24, 2018
 84 days84 days
Net earnings (loss)(2,733)(4,480)
Income taxes expense (recovery)(1,051)(1,550)
Financial expenses1,829 1,837 
Impairment loss on the available-for-sale asset 118 
Depreciation and amortization2,212 2,746 
Impairment loss on goodwill, intangible assets and property, plant and equipment24 127 
EBITDA281 (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-Marie
Ste-Marie Strategy and Communications Inc.
Investor Relations
Tel. : 450-449-0026, ext. 1180
Fax : 450-449-6180
investors@colabor.com