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 Recent Events:
- Sales decreased by 23.3% to $85.6
million, compared to $111.6 million for the first quarter of 2020,
mainly explained by the mandatory 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
distribution activities during the first quarter of 2020;
- Net loss from continuing operations
decreased to $1.0 million compared to $1.9 million for the
corresponding period of 2020;
- Adjusted EBITDA(1) increased to
$3.8 million from $3.7 million for the corresponding period 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;
- Stable cash flow from operating
activities of $5.4 million compared to $5.6 million for the first
quarter of 2020, despite lower sales; and
- Conclusion of new credits
agreements in February 2021, and redemption of all outstanding
convertible debentures completed on March 23, 2021.
Table of first quarter 2021 Financial
Highlights:
Financial
highlights |
12 weeks |
(in thousands of dollars except percentages, per share data and
financial leverage ratio) |
2021 |
|
2020 |
|
$ |
|
$ |
|
Sales from continuing operations |
85,635 |
|
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 |
) |
Net loss |
(1,027 |
) |
(8,330 |
) |
Per share - basic and diluted ($) |
(0.01 |
) |
(0.08 |
) |
Cash
flow from operating activities |
5,376 |
|
5,613 |
|
Financial position |
As at |
|
As at |
|
|
March 20, |
|
December 26, |
|
|
2021 |
|
2020 |
|
Net debt(2) |
50,530 |
|
52,100 |
|
Financial leverage ratio(3) |
1.7x |
|
1.8x |
|
(1) |
Non-IFRS measure. Refer to the table Reconciliation of Net Earnings
(loss) to adjusted EBITDA and to MD&A section 6 "Non-IFRS
Performance Measures". Adjusted EBITDA corresponds to net earnings
(loss) before costs not related to current operations, depreciation
and amortization and expenses for stock-based compensation
plan. |
(2) |
Non-IFRS measure. Refer to MD&A section 6 "Non-IFRS
Performance Measures". Net debt corresponds to bank indebtedness,
current portion of long-term debt, long-term debt and convertible
debentures, net of cash. |
(3) |
Financial leverage ratio is an indicator of the Company's ability
to service its long-term debt. It is defined as net debt / adjusted
EBITDA for the last twelve months. Refer to MD&A section 6
"Non-IFRS Performance Measures". |
|
|
“Despite restaurant dining room closures and
citizen confinement, we are ending the first quarter of 2021 with
good results. Due to the optimization measures implemented in 2020,
as well as tight management of our cost structure, subsidies
contribution and optimal cash flow management in order to minimize
the impacts of the pandemic, Colabor continued to improve
profitability, generate strong cash flow and reduce net debt," said
Louis Frenette, President and Chief Executive Officer of
Colabor.
Results for the First Quarter of
2021
Consolidated sales for the first quarter
amounted to $85.6 million compared to $111.6 million during the
corresponding quarter of 2020, a decrease of 23.3%. The pandemic
impacted all 12 weeks of the 2021 quarter compared to two weeks in
the quarter of last year. Sales for the Distribution segment
decreased by 29.0% explained by an amount of $8.6 million
related to the termination of a contract from the Specialized
distribution during the first quarter of 2020, as well as the
volume decrease related to the pandemic for restaurants and chains
clients, partially mitigated by a volume increase for retail
clients. Wholesale segment sales decreased by 8.2%, due to a volume
decrease from the pandemic and lower intersegment sales, partly
mitigated by growth from some customers less affected by the
effects of the pandemic and 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% during 2020. The improvement,
as a percentage of sales, are mainly due to the deployment of
operational optimization measures in fiscal year 2020, the decrease
in salaries resulting from measures taken during the pandemic and
the subsidies of $1.3 million, mitigated by the decrease in
sales due to the pandemic.
Net loss from continuing operations was $1.0
million, a decrease of 46.0% compared to $1.9 million for the
corresponding quarter of 2020 resulting essentially from the
increase in adjusted EBITDA(1), the decrease in the depreciation
and amortization expenses, the decrease in costs not related to
current operations, mitigated by the decrease of the income tax
recovered.
Net loss for the first quarter were $1.0
million, compared to net loss of $8.3 million for the corresponding
period of 2020. The variation is explained by the elements
mentioned above and to the net loss decrease of $6.5 million
related to discontinued operations.
Cash Flow and Financial
Position
Cash flows from operating activities reached
$5.4 million for the first quarter, compared to $5.6 million for
the corresponding period of 2020. This decrease is mainly due to a
higher utilization of working capital(4), mitigated 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 explained by the drop in
sales during the first quarter due to the pandemic and by the
seasonality effect.
As at March 20, 2021, the Company's net debt(2),
including convertible debentures and net of cash, was down to
$50.5 million, compared to $52.1 million at the end of the
fiscal year 2020. This decrease is mainly due to the increase in
cash generated by cash flows from operating activities.
(4) |
Working capital is an indicator of the Company's ability to hedge
its current liabilities with its current assets. Refer to MD&A
section 3.2 "Financial Position" for detailed calculation. |
|
|
Outlook
“We will continue to adapt as the pandemic
evolves and we are prepared for the eventual recovery. Closing the
new credit agreements in the first quarter of 2021 is in line with
our primary objective of increasing our profitability and will
allow us to have cash available to implement the 2021 strategic
plan when conditions permit.”, commented Louis Frenette.
Non-IFRS Performance
Measures
The information provided in this release
includes non-IFRS performance measures, notably adjusted earnings
before financial expenses, depreciation and amortization and income
taxes ("Adjusted EBITDA"(1)). As these concepts are not defined by
IFRS, they may not be comparable to those of other companies. Refer
to Section 6 "Non-IFRS Performance 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 expenses |
1,737 |
|
1,696 |
|
Operating earnings (loss) |
475 |
|
(1,025 |
) |
Expenses for stock-based compensation plan |
22 |
|
99 |
|
Costs not related to current operations |
91 |
|
1,080 |
|
Depreciation and amortization |
3,260 |
|
3,544 |
|
|
|
|
Adjusted EBITDA(1) |
3,848 |
|
3,698 |
|
Additional Information
The Management Discussion and Analysis and the
consolidated financial statements of the Company are available on
SEDAR (www.sedar.com). Additional information, including the annual
information form, about Colabor Group Inc. can also be found on
SEDAR and on the Company’s website at www.colabor.com.
Forward-Looking Statements
This press release contains certain
forward-looking statements as defined under applicable securities
law. Forward-looking information may relate to Colabor's future
outlook and anticipated events,
business, operations, financial
performance, financial condition or results and, in some
cases, can be identified by terminology such as "may"; "will";
"should"; "expect"; "plan"; "anticipate"; "believe"; "intend";
"estimate"; "predict"; "potential"; "continue"; "foresee", "ensure"
or other similar expressions concerning matters that are not
historical facts. Particularly, statements regarding the
Company’s financial guidelines, future operating results and
economic performance, objectives and strategies are forward-looking
statements. These statements are based on certain factors and
assumptions including expected growth, results of operations,
performance and business prospects and opportunities, which
Colabor believes are reasonable as of the current
date. Refer in particular to section 2.2 "Development
Strategies and Outlook" of the Company's MD&A available on
SEDAR (www.sedar.com). While Management considers these assumptions
to be reasonable based on information currently available to the
Company, they may prove to be incorrect. Forward-looking
information is also subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially
from what Colabor currently expects. For more exhaustive
information on these risks and uncertainties, the reader should
refer to section 10 "Risks and Uncertainties" of the Company's
MD&A. These factors are not intended to represent a complete
list of the factors that could affect Colabor and future events and
results may vary significantly from what Management currently
foresees. The reader should not place undue importance on
forward-looking information contained in this press release,
information representing Colabor's expectations as of the date of
this press release (or as of the date they are otherwise stated to
be made) and are subject to change after such date. While
Management may elect to do so, the Company is under no obligation
(and expressly disclaims any such obligation) and does not
undertake to update or alter this information at any particular
time, whether as a result of new information, future events or
otherwise, except as required by law.
Conference Call
Colabor will hold a conference call to discuss
these results on Tuesday, May 4, 2021, beginning at 9:00 a.m.
Eastern time. Interested parties can join the call by dialing
1-888-390-0549 (from anywhere in North America) or 1-416-764-8682.
If you are unable to participate, you can listen to a recording by
dialing 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, until 11:59 p.m. on
Tuesday, May 11, 2021.
Those wishing to join the webcast can do so by
clicking on the following
link: http://www.colabor.com/en/investisseurs/evenements-et-presentations/
About Colabor
Colabor is a distributor and wholesaler of food
and related products serving the hotel, restaurant and
institutional markets or "HRI" in Quebec and in the Atlantic
provinces, as well as the retail market. 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:
Marie-France LabergeCorporate Controller and
Interim Chief Financial OfficerColabor Group IncTel.: 450-449-4911
extension 1272investors@colabor.com |
Danielle Ste-MarieSte-Marie Strategy and
Communications Inc.Investor RelationsTel.: 450-449-0026, extension
1180 |
Colabor (TSX:GCL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Colabor (TSX:GCL)
Historical Stock Chart
From Jul 2023 to Jul 2024