Share Name | Share Symbol | Market | Type |
---|---|---|---|
Colabor Group Inc | TSX:GCL | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.02 | -2.00% | 0.98 | 0.97 | 0.99 | 1.00 | 0.97 | 1.00 | 111,460 | 19:59:47 |
BOUCHERVILLE, QC, July 17, 2014 /CNW Telbec/ - Colabor Group Inc. (TSX: GCL) ("Colabor" or the "Company") today reported results for the second quarter of fiscal 2014 ended June 14, 2014.
"Despite a market that remains difficult, the increase in sales reflects the success of measures taken under Colabor's action plan. The excellence of our operations and our distinctive advantage in fish, seafood and meat validates our strategy of methodically growing our business in these major categories in order to enhance our product offering and deliver greater value added to our customers. Initiatives to stimulate sales combined with the reorganization of our sales force in eastern Quebec have also contributed significantly to this improvement," said Claude Gariépy, President and Chief Executive Officer of Colabor.
Financial highlights | Quarters ended | Six months ended | ||||||
(thousands of dollars except per-share data) | June 14, 2014 | June 15, 2013 | June 14, 2014 | June 15, 2013 | ||||
Sales | 347,200 | 345,817 | 626,518 | 639,397 | ||||
EBITDA | 9,504 | 9,728 | 9,652 | 12,037 | ||||
Charges not related to current operations | 0 | 0 | 0 | 247 | ||||
Net earnings | 1,630 | 2,390 | (3,936) | (968) | ||||
Per share - basic ($) | 0.06 | 0.09 | (0.15) | (0.04) | ||||
Cash flow from operations* | 1,600 | 21,860 | 13,547 | (3,929) | ||||
Weighted average number of shares outstanding (basic, in thousands) |
27,062 | 27,062 | 27,062 | 25,578 |
* After net change in working capital
SECOND-QUARTER RESULTS
Consolidated sales for the 84-day period ended June 14, 2014 were $347.2
million, up from $345.8 million for the 84-day period ended June 15,
2013. This 0.4% increase mainly reflects strong growth in sales of the
meat and fish categories and an improvement in the overall performance
of the Eastern Quebec and Maritimes division. These factors were offset
in part by a decrease in sales in Ontario and a decline in sales of the
Boucherville division. Excluding the residual effect of the end of a
large supply contract in Ontario, comparable sales, were up 0.7%.
On a segmented basis, sales of the Distribution segment were $226.2 million, down 1.3% from $229.1 million a year earlier, and comparable sales were down 0.8%. Sales of the Wholesale segment rose 3.7% to $121.0 million, from $116.8 million a year earlier.
Earnings before financial expenses, income taxes, depreciation and amortization ("EBITDA") were $9.5 million, or 2.7% of sales, compared to $9.7 million, or 2.8% of sales, in the second quarter of 2013. Profitability improved in the meat and fish divisions and costs were reduced as a direct result of measures taken under the Company's action plan for Eastern Quebec and the Maritimes. On the other hand, profitability was negatively affected by lower sales in the Boucherville and Ontario divisions.
Net earnings for the second quarter of 2014 were $1.6 million, or $0.06 per share, versus $2.4 million, or $0.09 per share, in the same quarter of 2013. Cash flow from operations was $1.6 million, compared to $21.9 million a year earlier. The variation between the two periods reflects a net change in working capital more typical of seasonal variations this year compared to last year.
SIX-MONTH RESULTS
For the 165-day period ended June 14, 2014, total sales were $626.5
million, down 2.0% from $639.4 million for the 166-day period ended
June 15, 2013. Comparable sales showed a slight 0.2% decrease.
EBITDA was $9.7 million, or 1.5% of sales, in the first six months of 2014, compared to $12.0 million, or 1.9% of sales, in the first six months of 2013. A net loss of $3.9 million was recorded for the first six months of 2014, compared to a net loss of $968,000 a year earlier. Cash flow from operations was $13.5 million in the first six months of 2014, compared to a net cash outflow of $3.9 million for the same period in 2013.
FINANCIAL POSITION
As at June 14, 2014, Colabor had drawn $85.6 million on its authorized
bank credit facilities. Average daily indebtedness in the second
quarter of 2014 was $90 million, down from $96 million in the first
quarter of 2014 and $115 million in the second quarter of 2013. This
improvement reflects a better working capital management.
DECLARATION OF A QUARTERLY DIVIDEND OF $0.06 PER SHARE
The Board of Directors of the Company has declared a cash dividend of
$0.06 per share, to be paid August 15, 2014 to shareholders of record
as of the close of business July 31, 2014. This dividend constitutes an
eligible dividend under subsection 89(14) of the Income Tax Act.
OUTLOOK
"We are satisfied with the performance of our meat and fish divisions
and their results are likely to improve further following the HACCP
certification of the Norref division. In Eastern Quebec, the execution
of our action plan has brought significant progress in sales growth,
cost reduction and optimization of operating efficiency. In a similar
move, we will reposition our Ontario sales force as we did in Eastern
Quebec last fall. With regard to the wholesale activities of the
Boucherville division, we have renewed more than 40% of our sales under
long-term contracts and are working on initiatives to secure the rest
of the volume. With an objective of creating more value for our
shareholders, we are actively pursuing efforts to further strengthen
Colabor's competitive position in its target markets. Given our
increased flexibility, an increase in sales volume will have a direct
effect on operating profitability," concluded Mr. Gariépy.
SUBSEQUENT EVENT
On July 3, 2014, the Company finalized an agreement to settle a
litigation. Based on this agreement, costs not relating to current
operations of approximately $1.1 million will be recorded in the
statement of earnings of the third quarter of 2014.
CONFERENCE CALL
Colabor will hold a conference call to discuss these results on
Thursday, July 17, beginning at 10:30 p.m. Eastern Time. Interested
parties can join the call by dialling 514-807-9895 (from Montreal 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 63840005 on your telephone keypad.
The recording will be available from 2:30 p.m. Thursday, July 17 to
11:59 p.m. Thursday, July 24, 2014.
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), presented in the financial
statements under "Operating earnings before costs not relating to
current operations, depreciation and amortization". 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 the 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
Copyright 2014 Canada NewsWire
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