Colabor Group reports results for first quarter 2012
02 Maggio 2012 - 4:30PM
PR Newswire (Canada)
-- Comparable sales up 1.1% (total sales up 24.4%) -- 11.3%
increase in EBITDA to $5.5 million, or 1.83% of sales -- Cash flow
increase of 4.9% to $3.3 million, or $0.14 per share -- New
corporate structure to foster achievement of administrative and
operational synergies BOUCHERVILLE, QC, May 2, 2012 /CNW Telbec/ -
Colabor Group Inc. ("Colabor" or the "Company") today reported
results for the first quarter of fiscal 2012 ended March 24,
2012. "The results of the first quarter, though slightly below our
expectations, show the first signs of results from our refocusing
on current operations in order to achieve adequate profitability
without delay," said Claude Gariépy, President and Chief Executive
Officer of Colabor. "A competitive business environment requires
optimization of our ways of doing things and the accelerated but
disciplined execution of our action plan. To this end, Colabor is
putting in place a new corporate structure grouping its business
units along geographical lines. This reorganization will foster
management and operational synergies and should begin to bear fruit
gradually from the second half of the current year." Financial
highlights Quarter ended (thousands of dollars except per-share
data) March 24, 2012 March 26, 2011 Sales 297,933 239,416 EBITDA*
5,456 4,904 Net earnings (loss) (736) 52 Cash flow* 3,275 3,121 Per
share - basic 0.14 0.14 Weighted average number of shares
outstanding (basic, in thousands) 23,061 22,984 * Cash flow from
operations before changes in operating assets and liabilities less
purchases of property, plant and equipment and interest paid.
FIRST-QUARTER RESULTS Consolidated sales for the 84-day period
ended March 24, 2012 were $297.9 million, compared to
$239.4 million for the 85-day period ended March 26,
2011. The increase of 24.4% was due essentially to the acquisition
of Viandes Décarie Inc. on January 1, 2012, of The Skor Food
Group Inc. on May 9, 2011 and of Edfrex Inc. on March 30,
2011, and to the contribution of Les Pêcheries Norref Québec Inc.
over the full quarter, compared to 27 days in 2011. These
acquisitions accounted for $58.7 million in additional sales
in the first quarter of 2012. Excluding acquisitions, and on the
basis of an equal number of days, comparable sales rose 1.1%.
Earnings before financial expenses, income taxes, depreciation and
amortization ("EBITDA") were up 11.3% to $5.5 million, or
1.83% of sales, from $4.9 million, or 2.05% of sales, a year
earlier. The reduction in percentage of sales reflects stiff
competition in the foodservice distribution industry, with
distributors reducing their margins to preserve market share in an
economy that has constrained consumers' discretionary purchasing
power. Cash flow was up 4.9% to $3.3 million, or $0.14 per
share, compared to $3.1 million, or $0.14 per share, in the
first quarter of 2011. As a result of increased non-monetary
charges for depreciation and amortization of tangible and
intangible assets following the acquisitions of recent years,
management considers that cash flow is a better indicator of
Colabor's financial performance. An increase of $937,000 in these
non-monetary charges relative to the first quarter of 2011 resulted
in a net loss of $736,000 in 2012, as opposed to net earnings of
$52,000 in 2011. The ratio of dividend to cash flow per share over
the previous 12 months was 86% as at March 24, 2012. This
ratio takes into account the change in dividend payment effective
as of the first quarter of 2012. SEGMENTED RESULTS Sales of the
Wholesale segment were $83.2 million in the first quarter of
2012, up from $72.3 million a year earlier. The increase of
$10.9 million reflects mainly the contribution of Viandes Décarie,
offset in part by the elimination of sales to Colabor divisions.
Comparable sales were up 2.8%. Sales of the Distribution segment
were $214.7 million in the first quarter of 2012, compared to
$167.1 million a year earlier. The increase of
$47.6 million is attributable to contributions from the other
acquisitions noted above. Comparable sales were up 0.4%. NEW
CORPORATE STRUCTURE To optimize the enterprise-wide efficiency of
its operations, Colabor announces the implementation of a new
corporate structure that will group its divisions along basically
geographical lines. This structure entails the creation of three
business units reporting to head office: -- Eastern Quebec and New
Brunswick (Bertrand, RTD, Edfrex), headed by Mr. Denis Pascal, --
Centre (Boucherville, Norref, Viandes Décarie), headed by Ms.
Geneviève Brouillette, -- Ontario (Summit, Skor), headed by Mr.
Jack Battersby. "This reorganization will make Colabor a more
efficient company which will enhance its competitiveness within the
industry," added Mr. Gariépy. "The new structure will be in harmony
with our information management systems, whose integration on two
interrelated platforms is currently on track for completion by the
end of 2012. This integration is the corner stone for a
considerably accelerated achievement of synergies. The Centre
business unit will also be responsible for optimizing business
links with our network of independent distributors and for
extending the product offerings of Norref and Viandes Décarie to
all of Colabor in order to maximize sales." NONRENEWAL OF A SUPPLY
CONTRACT IN ONTARIO The Company has been informed of the nonrenewal
of a foodservice supply contract in Ontario, effective April 2013.
This contract accounts for annual sales of approximately
$85 million, but its profit margin is below average. Though
the reduction in sales will have no effect on the 2012 year, the
Company will take it into account in its management and operational
reorganization in Ontario. FINANCIAL POSITION As of March 24,
2012, the Company had drawn $120.6 million on its authorized
bank credit facility of $150.0 million. The ratio of total
debt at March 24, 2012 to EBITDA of the previous 12 months was
3.36:1.00. The bank syndicate has agreed to new terms stipulating
that the Company will maintain a ratio below 3.50:1.00 through the
third quarter of 2012 and then 3.25:1.00 through the third quarter
of 2013. The interest coverage ratio was 4.30:1.00, above the
required minimum of 3.50:1.00. OUTLOOK "Since we foresee difficult
business conditions in 2012, we are determined to carry our action
plan through to completion. It will give Colabor a solid footing
from which to take advantage of business opportunities as they
arise. We will play an active role in the consolidation of our
industry, by means of highly synergistic acquisitions that will
increase the density of our network. We will also pursue our
objective of offering customers a one-stop-shop solution through
the addition of related products. All things considered, despite an
arduous first quarter for the whole industry, Colabor is confident
of attaining its operational and financial objectives for the
current year," concluded Mr. Gariépy. CONFERENCE CALL Colabor will
hold a conference call to discuss these results on Wednesday,
May 2, 2011, beginning at 3 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 71003150# on your
telephone keypad. The recording will be available from 7 p.m.
Wednesday, May 2 to 11:59 p.m. Wednesday, May 9, 2011.
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. ABOUT COLABOR Colabor
is a wholesaler and distributor of food and non-food products
serving the retail market (grocery stores, convenience stores,
etc.) and the foodservice market (cafeterias, restaurants, hotels,
restaurant chains), in Quebec, Ontario and the Atlantic provinces.
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. COLABOR GROUP INC. CONTACT: Colabor Group
Inc. Claude Gariepy President and Chief ExecutiveOfficerTel.
450-449-0026 ext. 265Fax 450-449-6180cgariepy@colabor.comMichel
Loignon, CAVice-President and Chief FinancialOfficerTel.
450-449-0026 ext. 235Fax
450-449-6180mloignon@colabor.comMaisonBrison Inc.Martin Goulet,
CFASenior Vice-President,Investor RelationsTel. 514-731-0000 ext.
229Fax 514-731-4525martin@maisonbrison.com
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