- Comparable sales up 0.5%
- EBITDA of $9.7 million, or
2.8% of sales
- Declaration of a quarterly dividend of $0.06 per share
BOUCHERVILLE,
QC, July 17, 2013 /CNW Telbec/
- Colabor Group Inc. (TSX: GCL) ("Colabor" or the "Company") today
reported results for the second quarter of fiscal 2013 ended
June 15, 2013.
"Our overall comparable performance of the
second quarter shows a significant sequential improvement from the
first quarter of this year. In fact, the decrease in EBITDA from a
year earlier is due essentially to the end of a large supply
contract at the beginning of the second quarter of 2013," said
Claude Gariépy, President and Chief Executive Officer of
Colabor.
| |
| Financial
highlights |
Quarter ended |
|
Six
months ended |
| (thousands of dollars
except per-share data) |
June 15,
2013 |
|
June 16,
2012 |
|
June 15,
2013 |
|
June 16,
2012 |
| Sales |
345,817 |
|
354,294 |
|
639,397 |
|
652,227 |
| EBITDA* |
9,728 |
|
10,651 |
|
12,037 |
|
16,107 |
| Charges not related to
current operations |
0 |
|
253 |
|
247 |
|
253 |
| Net earnings
(loss) |
2,390 |
|
2,903 |
|
(968) |
|
2,167 |
| |
Per share - basic ($) |
0.09 |
|
0.13 |
|
(0.04) |
|
0.09 |
| Cash flow* |
4,192 |
|
7,567 |
|
3,726 |
|
10,842 |
| |
Per share - basic ($) |
0.15 |
|
0.33 |
|
0.15 |
|
0.47 |
| Weighted average
number of shares outstanding (basic, in thousands) |
27,062 |
|
23,076 |
|
25,578 |
|
23,069 |
| * |
Cash flow from operations before changes in operating assets
and liabilities less purchases of property, plant and equipment and
interest paid. |
SECOND-QUARTER RESULTS
Comparable sales were up 0.5% excluding certain items listed below.
Total sales for the 84-day period ended June 15, 2013 were $345.8 million, compared to $354.3 million for the 84-day period ended
June 16, 2012. The decrease of
2.4% was due essentially to the loss, announced in May 2012, of a large supply contract in
Ontario effective April 1, 2013; to the Company's decision to
substantially reduce unprofitable activities in the distribution of
tobacco products at the beginning of 2013; and, to a lesser extent,
to the sale of the Skor Culinary Concepts Division in December 2012. On the other hand, the acquisition
of T. Lauzon Ltée ("Lauzon"), completed on March 4, 2013, contributed $20.3 million to sales in the second quarter.
Earnings before financial expenses, income
taxes, depreciation and amortization ("EBITDA") were $9.7 million, or 2.8% of sales, versus
$10.7 million, or 3.0% of sales,
a year earlier. The reduction in dollar terms reflects mainly the
end of the supply contract, while the reduction as a percentage of
sales reflects the normal lag time in adjusting expenses to the new
sales volume.
Net earnings for the second quarter of 2013 were
$2.4 million, or $0.09 per share, compared to $2.9 million, or $0.13 per share, in the corresponding quarter of
2012. The results for the 2012 quarter are net of a $253,000 asset writeoff charge related to the
integration of information systems in Ontario.
Cash flow was $4.2 million, or $0.15 per share, compared to $7.6 million, or $0.33 per share, a year earlier. The change
reflects mainly the effect on cash flow of an investment of
$2.9 million related to the upgrading
of physical installations to obtain HACCP accreditation at the
Norref division.
SEGMENTED RESULTS
Sales of the Distribution segment were $229.1 million in the second quarter of
2013, compared to $250.0 million
a year earlier. The 8.4% decrease is attributable essentially to
the factors mentioned above, offset in part by Lauzon's
distribution sales. Comparable sales were up 0.1%.
Sales of the Wholesale segment were $116.8 million in the second quarter of
2013, up from $104.3 million in
the second quarter of 2012. The 11.9% increase reflects mainly the
acquisition of Lauzon's wholesale operations. Comparable sales were
up 1.3%.
SIX-MONTH RESULTS
For the 166-day period ended June 15,
2013, total sales were $639.4
million, down 2.0% from $652.2
million for the 168-day period ended June 16, 2012. On the basis of an equal
number of days, and excluding the aforementioned items, comparable
sales were up 0.3%.
EBITDA for the first six months of 2013 was $12.0 million, or 1.9% of sales, compared to
$16.1 million, or 2.5% of sales,
in the first six months of 2012. The net loss for the period was
$968,000, compared to net earnings of
$2.2 million in the year-earlier
period. Cash flow was $3.7 million, or $0.15 per share, compared to $10.8 million, or $0.47 per share, a year earlier.
FOCUSED PURSUIT OF EFFICIENCY AND DEVELOPMENT
PLAN
Colabor is assiduously pursuing its plan to optimize overall
operating efficiency and accelerate the capture of savings. During
the second quarter the Company pursued the following
initiatives:
- Launch of measures to stimulate organic growth and
higher-margin sales;
- Transfer of meat-product purchasing from the Ontario Division
and Eastern Quebec to Lauzon;
- Review of operations of the Eastern
Quebec and New Brunswick
division, including improvement of the supply chain among the
warehouses of this division;
- Review of agreements with suppliers and of merchandise
acquisition costs;
- Pursuit and completion of the federal HACCP accreditation
process for the Norref distribution centre. Colabor expects to
receive this accreditation in the coming weeks.
FINANCIAL POSITION
As of June 15, 2013, the Company
had drawn $85.4 million on its
authorized bank credit facility. On July 15, 2013, the Company agreed with its
lenders to amend certain terms of its credit facilities effective
June 15, 2013. This agreement
has the effect of eliminating the need to meet certain financial
ratios, of authorizing available credit of $135.0 million and of advancing the maturity date
of the credit facilities to April 28,
2015.
DECLARATION OF A $0.06 PER SHARE QUARTERLY DIVIDEND
The Company's Board of Directors has declared a cash dividend of
$0.06 per share, to be paid on
August 15, 2013 to the Company's
shareholders of record at close of business on August 2, 2013.
"The dividend level provides comfort to
Management with regards to the Company's ability to sustain this
amount given the outlook of the organization," added Mr.
Gariépy.
CONFERENCE CALL
Colabor will hold a conference call to discuss these results on
Wednesday, July 17, 2013,
beginning at 2 p.m. Eastern
Time. Interested parties can join the call by dialling
647-427-7450 (from Toronto and
overseas) or 1-888-231-8191 (from elsewhere in North America). If you are unable to
participate, you can listen to a recording by dialling
1-855-859-2056 and entering the code 14951384 on your telephone
keypad. The recording will be available from 5 p.m. on Wednesday,
July 17, 2013 to 11:59
p.m. on Wednesday, July 24,
2013.
NON-IFRS MEASURES
The information provided in this release includes non-IFRS
performance measures, notably earnings before financial expenses,
income taxes, depreciation and amortization ("EBITDA") and cash
flow. Since these concepts are not defined by IFRS, they may not be
comparable to those of other companies.
ADDITIONAL INFORMATION
The Management Discussion and Analysis and financial
statements of the Company will be available at SEDAR
(www.sedar.com) following publication of this release. Additional
information about Colabor Group Inc. may also be found at SEDAR and
on the Company's website at www.colabor.com.
FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements reflecting
the opinions or current expectations of Colabor Group Inc.
concerning its performance and business operations and future
events. These statements are subject to risks, uncertainties and
assumptions. Actual results or events may differ.
ABOUT COLABOR
Colabor is a wholesaler and distributor of food and non-food
products serving the foodservice market (cafeterias, restaurants,
hotels, restaurant chains) and the retail market (grocery stores,
convenience stores, etc.) in Quebec, Ontario and the Atlantic provinces.
SOURCE Colabor Group Inc.